Hungarian Magyar Vagon completes takeover of Talgo for $632 million.

Talgo The stock market soared again yesterday amid an imminent purchase offer from a Hungarian investor. Magyar carriageunknown corporation in Spain, which through the group DJJcarriage factory, activities similar to those of Talgo, but with a much lower technological base. The imminence of the acquisition offer announced by Talgo in November saw the group’s price soar by 9.3% yesterday. before CNMV interventionwhich temporarily suspended the value while waiting for the group to clarify the status of the operation.

Talgo, which has not disclosed the investor’s identity to the market throughout this period, said yesterday that it had not received a new communication regarding what was mentioned by the CNMV in November 2023. Market sources indicate that the offering will be launched in the coming days.

offer to purchase 100% Talgo for cash comprises payment 5 euros per sharewhich is equivalent estimate 632 million euros. Talgo trades at 4.7 euros per share with a capitalization of 603 million euros.

The Trilantic Foundation will be the largest beneficiary of this operation.remaining in the capital of the Spanish train manufacturer for more than seven years after promoting the company’s IPO in 2015. His direct participation today increases to 40%., according to the latest CNMV data. Trilantic controls Talgo through a company Pegasusa vehicle in which they also participate as a minority TorrealHe investment arm of the Abello familyand members Oriol FamilyTalgo founders, including the company’s president, Carlos de Palacio. The second largest shareholder is a family investment firm. Torrblas – Ana Patricia Torrente Blasco5.04% – and the insurer Saint Lucia (4.91%). According to the Bloomberg list, the stake also includes Norges Bank with 3%.

The Hungarian investor, whom Talgo declined to name, is Magyar carriagethrough its subsidiary Dunakesi Jarmujavito (DJJ), which produces carriages in Budapest.

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DJJ’s shareholder history has been very eventful since its founding in 1911. created and controlled by the Hungarian State Railway Company throughout most of its history, but after the fall of the Berlin Wall the German group Adtrans occupied most of the capital. In 2001, Bombardier took over the management of Adtranz and In 2014, the Hungarian company returned to state hands.

In 2020, the Russian company Transmanshholding took over control along with Magyar carriagebut in 2022, sanctions for the invasion of Ukraine forced this local investor to take 100%.

The President of Magyar Vagon is Zsolt Komondiwho in turn is the CEO Solva Industriala fund that controls the shares of the holding and which, in turn, is associated with Great Private Equity (GPE). It is unclear who is behind this scheme. Some hints about Zsolt Hernadi

who is the president of the Hungarian oil company MOL from the year 2000. Others are talking about the businessman. Ivan Garanchi. These are leaders close to the Prime Minister of Hungary. Victor Orbanreports the local press.

Magyar Vagon wins privatization of MAV Vagon at the end of 2023a subsidiary of State Railways that assembles and maintains the group’s trains.

Among his greatest milestones are sale of wagons to Egyptian Railways in an order worth 1.3 billion. Euro. Talgo also operates in Egypt. In 2023, the Spanish manufacturer and state-owned railway company Egypt ENR has signed a letter of intent to produce a fleet of 100 trains and build a factory to carry it out.

The entry of a Hungarian investor into Talgo will be carefully analyzed by the Spanish government under the argument that the company is strategic. Since 2020, an emergency decree has been in effect that suspended the liberalization of foreign investment and requires permission to buy shares in companies in key industries such as energy, telecommunications, manufacturing, media and defense. This protection against absorption of sensitive groups of the state It expanded and adjusted until it reached in July 2023 decree-law detailing the surveillance system developed by Brussels to stop the emergence of hostile investors from Russia or China, but the Spanish government will also, on a temporary basis, at least until December of this year, appeal to investors from other countries of the community.

If the takeover bid is formalized, It will pass the filter of the Ministry of Industry and Trade and will be considered by the Council of Ministers.. Talgo is of strategic importance because its first customer has so far been Renfe, both in the production of the trains and in their subsequent maintenance. The order for 30 high-speed trains from its platform is especially relevant. Avril

. They were hired in 2016, and the manufacturer had a three-year backlog of deliveries, which meant a fine of more than 100 million euros.

Talgo with a turnover of 283 million until June 2023 and a profit of 7 million.was analyzed by his opponent CAF several times, but the plan to create a national champion railroad never materialized.