Banc Sabadell | Sepi (the State Company for Industrial Investments) announced that it is considering acquiring a stake in Talgo (TLGO) ‘without entering into any agreement with third parties’. The transaction could involve a direct equity injection of 10% of the capital at €4.25 per share, with a substantial premium over Thursday’s closing price (43% more). In addition, it could also increase its weighting by subscribing to convertible bonds.
Assessment: The transaction would be part of the agreement reached two weeks ago by the presidents of the Spanish Government, Pedro Sánchez, and the Basque Government, Imanol Pradales. The fact that the announcement mentions that ‘they are not participating in any agreement with third parties’ seems to suggest that they wish to avoid launching a takeover bid for the company. The share price fell by 2.3% yesterday after the announcement was made.
