Talgo begins negotiations with Sidenor about entering the capital or purchasing 100% of the shares

Talgo confirmed on Monday that it had decided to begin negotiations with industry group Sidenor. for the purpose of analyzing a possible transaction, which may involve the acquisition of a significant portion or all of the share capital of a railway manufacturer. Talgo’s board of directors will always protect the interests of the company and its shareholders, the National Securities Market Commission (CNMV) emphasized.

Talgo decided to initiate these negotiations after evaluating the proposal presented by Sidenor and added that as the negotiation process progresses, it will promptly inform the market of any relevant facts that need to be communicated. Upon learning of the start of these negotiations between both companies, Sidenor limited himself to explaining to EEE that “this is another step” in the process and that the negotiations would be conducted confidentially.

However, sources close to the company indicate optimism prevailing at the top of the Basque steel company regarding the outcome of negotiations with the Spanish manufacturer of railway equipment. The latter also did not want to comment on the recently started negotiation process, referring to sources consulted by EFE, to what was already said after the meeting of the board of directors last Friday, October 18, when it was decided to start negotiations with Sidenor, and notified today in CNMV.

Supporting Sidenor’s interests

The possibility of Basque industrial group Sidenor acquiring a corresponding stake in train manufacturer Talgo has been recognized. support from investors as well as the central and Basque governments. On October 16, Sidenor announced its intention to enter the company either by purchasing part or even by acquiring the entire firm. Sidenor owner José Antonio Hainaga and the Basque government were willing to provide funds to purchase 30% of Talgo from the Trilantic fund.

Economy Minister Carlos Bodi noted that the entry into the capital of Talgo by a solvent national industrial company could be a viable long-term solution and provide stability to its shareholders. Basque Industry Minister Mikel Jauregui said the regional government supports Sidenor’s intention to enter the capital of Talgo if his roots in Euskadi are preserved and employment is secured.

Lehendakari Imanol Pradales already said a few days ago that If an industrial partner were found, he could be escorted to enter the railway company. DK. OO. stressed that any operation at Talgo must have an appropriate production plan to guarantee production and ongoing orders from the Spanish train manufacturer.

For its part, UGT FICA has assessed the possible entry of the Sidenor group into the railway manufacturing company, an operation which, in its opinion, could provide job stability for workers and promote investment in the medium and long term, although it calls for investment and guarantees and growth in employment, working conditions and the future of the company.

The Independent Center for Trade Unions and Civil Servants (CSIF) also assessed the operation, but called for caution and the utmost caution until the details and viability of the operation are known, taking into account the protection of the interests of labor and industrial capacity. and competitiveness in the Talgo market.

Interest in a Spanish company

In August, the executive rejected a takeover bid for Talgo presented by Hungarian group Ganz Mavag (Magyar Vagon), saying there were “insurmountable” risks to protecting Spain’s strategic interests. As part of this entire process, Talgo confirmed in July that it had received an offer from the Czech group Skoda Transportation, which included business combinations and industrial integration.

Talgo has two production plants and several technical service centers in Spain. The largest railway plant is in Rivabellos (Alava), employing 700 people, and the other is in the Madrid municipality of Las Rozas and employing 500 people. Talgo shares are down 1.18% today at €3.78 per share, after closing last Friday at €3.82 (down 0.39) and have accumulated declines of more than 14% this year.