Renta 4 | Mahindra, a shareholder in the company prior to its IPO, given that it was a long-standing shareholder in CIE Automotive, has sold its stake in the company (6.3 million shares representing 4.16% of the capital). The divestment, which was carried out in a block trade at a price of €3.4 per share, was expected and comes shortly after the Indian company reduced its stake in CIE Automotive by almost half (3.5%) last December.
The shares sold by Mahindra have been acquired by some of Dominion’s main shareholders and executives. ACEK, the Riveras family’s investment vehicle, acquired 3.14 million shares (2.08% of the capital), CEO Mikel Barandiarán acquired 1.575 million shares (1.042% of the capital) and Antón Pradera acquired the remaining 1.575 million shares (1.042% of the capital).
Assessment: considering that Mahindra’s exit was expected following the reduction of its stake in CIE Automotive, and that the shares have been acquired by Dominion’s senior executives and shareholders at no discount to the average market prices in recent weeks, we view the news as positive, as, on the one hand, it reduces the risk of shares being sold on the market and, on the other, it reinforces the confidence of the company’s main directors in its future and in the value of the shares, which we understand are trading at a significant discount to their real value.
We reiterate our OVERWEIGHT recommendation and P.O. of €5/share.
