The Spanish Government Wants To Oust Indra’s Chairman, Replacing Him With A Man Closer to PSOE

IndraIndra's headquarters

The Sociedad Estatal de Participaciones Industriales, Indra’s main shareholder (with 18% and two representatives on the board) has asked not to re-elect the group’s executive chairman, Fernando Abril Martorell, whose term of office ends this year. According to the Madrid press, it is proposing as a replacement Marc Murtra, an industrial engineer whose career has mainly been spent in public management. He was managing director of Red.es, director of Joan Clos’ cabinet during his time as minister (PSOE) and manager of education at Barcelona City Council. In 2011, he returned to the private sector as Managing Partner of Closa Investment Bankers.

The move has not been understood by the market, which has put downward pressure on the share price. As Renta 4 analysts explain “The Executive Chairman of the group, Fernando Abril-Martorell, took the reins of the group in 2015 and we consider that his management is positive.” They add “we value the news negatively as we consider that: 1) under Fernando Abril-Martorell the management of the group was very positive, 2) it could break with the continuity in management and 3) we believe that with a change in the Presidency it would be more feasible that, as is being discussed in the press, Indra acquires ITP, a corporate move we believe could be negatively valued in the market. It is a company that has been up for sale for a long time and has not found a buyer. That said, the change in the Chairmanship would have to be voted on at the General Shareholders’ Meeting and could meet with significant opposition.”

In the same vein, analysts at Intermoney flag that the president proposed for INDRA by SEPI “is not very independent, excessively politicised and has a less brilliant professional career than his predecessor, factors that could take their toll on Indra”.

In Q1’21, Indra posted revenues of 751 million euros (+2.2% YoY), with profit of 22 million euros. It ccumulated an order backlog of 5.322 billion euros, the highest in its history, supported by defence and security contracts. Debt (505m) is 2.4 times EBITDA.

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