TALGO TAKEOVER | Talgo’s main shareholder Trilantic will reject Skoda takeover bid if it turns out to be partial

Pegasusconsortium formed by the fund Trilanticbusinessman Juan Abello and the Oriol family, the main shareholder of Talgo with 40% of the capital, will reject any offer to buy its stake in the Spanish train maker unless an offer is made for all of the company’s shares. That is, Trilantic and the other participants will reject the offer from the Czech Skoda, which in the last hours has asked Talgo, if it is formulated through a partial purchase, which is confirmed by informed sources in the market. ASSETS, the economic vertical of Prensa Ibérica.

Last Tuesday, Skoda Transportation sent Talgo a proposal to carry out “Business Integration and Industrial Integration”without specifying an economic proposal. This approach is being taken in the midst of a public acquisition offer (takeover bid) that Hungary’s Magyar Vagon announced in March to buy all of Talgo for more than 620 million euros, equivalent to five euros per share.

One of the options that Skoda considered, and which has the support of the Spanish government, which opposed the Magyar Vagon proposal, was buy a stake of less than 30% in Talgowhich will be exempt from submitting a takeover bid, and that the remaining 10% of Trilantic was acquired by another financial partnerallowing the British fund to exit its stake. However, this is not an option for Pegasus, which will only accept a full offer, like the one put on the table by Magyar Vagon. This could be detrimental to minority shareholders, who own around 55% of Talgo’s capital, who would have no clear window to sell on the same terms as the majority shareholder.