Takeover bid again highlights possibility of corporate operation in Talgo, subject to Trilantic’s approval


Banc Sabadell announced last week, reacting to a publication in the press, that it had received a preliminary expression of potential interest in launching a takeover bid for 100% of the company’s shares by a Hungarian business group (a family holding company according to the press) at a price of €5/share, which would represent a premium of +28% over the previous day’s closing price (+43% over the average of the last six months). However, according to Talgo’s statement, as far as the Company knows, there is no decision of any kind from this investor regarding the possible takeover bid, nor is there any certainty that it will continue to analyse the operation. On the other hand, according to the press article, the investor group has already had a first meeting with Talgo’s board.

Talgo’s main shareholders are Pegaso Transportation (40%; mainly the Trilantic fund) and Torrblas (5%). The former has been invested in the company since 2006, which would have exceeded its investment time horizon. However, we must bear in mind that the price being considered would be -11% lower than the price at which MCH divested its 9% stake in the Company, -4% lower than the maximum of the last 3 years and -46% lower than the IPO price in 2015.

Assessment: Although there is still no certainty that the takeover bid will be launched, the news is positive insofar as it highlights again the possibility of a corporate operation in the Company which, a priori, we understand that it has to have Trilantic’s approval given the relevance of its stake in the Company.

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