Indra is exploring the possibility of selling Minsait piecemeal and acquiring 43% of Hisdesat, a subsidiary of Hispasat.
Everything corresponds to Indra’s future. And if there was ever a battle to win between the strategic plan championed by President Mark Murtra and the CEO’s plan, Jose Vicente de los Mosos, today – just on the day of its presentation – remains like a raft of oil, fueled and packed for success, but with a firm goal on which both parties agree: to grow in the defense and security business, as a leading company in Europe. To do this, the challenge is to sell the technology and digital consulting division (Minsait) and make money. The jewel in the crown is captain Luis Abril, who has managed to achieve success since taking charge of the team.
A dispute between one plan and another over whether to keep the technology business in Indra’s bowels ultimately settled on a “yes” shared by Murtra and one of its top executives, according to sources close to the company’s board. Amber shareholders, owned by investor Joseph Ugurlian and owning 7% of the capital, were limited on whether to sell it quickly or not, and weigh the option of doing it gradually or all at once. All offers are being considered, although there is growing interest in the option of divesting an initial stake of up to 49% in the unit, valued at around 1.8 billion euros and for which the ABC said there was growing interest from some funds.
In any case, the goal is to make Indra more adequately sized to be able to compete in Europe with giant peers, especially from France and Germany, in defense, security and… in the aerospace business, hence the company’s well-known interests under chairmanship Murtra To Hipasat, another of the companies in which the state has a presence. The company, led by former minister Pedro Duque, is controlled 89.68% by Redeia, 7.41% by the State Industrial Participation Society (SEPI, which also owns 27.99% of Indra shares) and 2.91% by CDTI.
However, sources familiar with the aerospace plans of Indra management explain to the newspaper that the option of “takeover” of Hispasat seems very “difficult”, so the initial or additional solution is to purchase a subsidiary. Hisdesat, an international commercial satellite communications service provider with leading agreements with the Department of Defense for 20 years. The operation will involve increasing the 7% of Hisdesat shares that Indra already owns and purchasing all or part of the stake that Hispasat controls (43%).
Thus, the sale of Minsait, which employs 40,000 people, as well as the development of some of the most interesting research and development projects in the Spanish production structure, seem to be the key to maintaining the cruising speed of the Indra of the future. On the agenda, according to what this newspaper published in mid-2023, was to include in the strategic plan the benefits of divesting the subsidiary in order to use the profits from it to focus on the future, especially in the area of Protecting and transforming Indra is national champion in this sector according to its own strategy. Sanchez governmentand with the support of SEPI, which owns 28% of its share capital.
Defense, Security and Aerospace
Indra’s goal is to gain momentum in the defense, security and aerospace industries on par with European giants, to opt for international government contracts independently or together with partners. To do this, it will get rid of non-strategic assets, including the technology and digital consulting division (Minsait).
Funds interested in Minsait
Following confirmation by Indra President Mark Murtra himself that the MinSite site was being put up for sale, proposals were received from some investment funds, even if they were not official, since they were not approved by the Indra board – until they were included in the strategic plan. . Offers ranged from paying about 2 billion euros for 100% of the company to a lower amount, from 1,400 to 1,700, with the option of buying a majority stake, but not the whole amount, from 70 to 80%.
Buy companies
Once Indra manages to make money from selling non-strategic assets, it will bet on buying shares or companies, among which Hispasat stands out – preferably the Hisdesat subsidiary, which could be easier to digest – and ITP.
Currently, venture capital funds that have expressed interest are waiting for an official announcement to make a purchase offer. Bain Capital, Carlisle and Sinven These are some of the funds that have knocked on your door. Among the proposals, according to the same sources, from payment of about 2 billion euros for 100% of the company; and two more offers at a lower cost –from 1400 to 1700 million– with the possibility of purchasing a controlling stake, but not all, within 70-80%.
Expectations before SETT
Meanwhile, some analysts consulted, ahead of today’s strategic plan presentation, ventured to suggest that the government would acquire a full or partial stake in Indra through the new digital SEPI – SETT, the Spanish Society for Technological Transformation, approved yesterday by the Council of Ministers. From Renta 4 they appreciate that “the function of SETT should always be to support the sector through cooperation measures in research, financing or co-investment projects, rather than competition with the private sector”, so that “in addition to including the participation of the State company Telefonica, which has already announced its intention to acquire a 10% stake, SETT may also acquire all or part of Minsait.