Sidenor’s Bid to Acquire Talgo Faces Challenges

Steel giant Sidenor has extended a €148 million offer to the Trilantic fund, aiming to acquire its 29.9% stake in Talgo. However, Trilantic, Talgo’s primary shareholder, is holding firm on its valuation, demanding €185 million. This was reported by the railway transport news portal Railway Supply.

Talgo’s stock surged by 3.27% on Monday, closing at €3.47 per share, which places Trilantic’s holdings at a market value of €128.5 million. Despite Sidenor’s offer of approximately €4 per share, Trilantic’s expectations align with a valuation of €5 per share. This figure matches a prior offer by Hungary’s Ganz-Mavag consortium, vetoed in August by Spain’s government due to national security concerns.

Why Talgo’s Valuation Matters

José Antonio Jainaga, Sidenor’s president, leads efforts to limit acquisition to 29.9%, avoiding a mandatory takeover bid. Collaborating with Sidenor’s investment arm Mirai, Jainaga has sought financial partners to support this initiative. Prospective allies include BBK, Kutxa, and Vital foundations, all stakeholders in Kutxabank.

Talgo and the Future of Spain’s Rail Industry

Kutxabank, involved in railway company CAF, has shown no interest in forming an industrial partnership with Talgo. CAF’s strategic focus lies elsewhere, particularly in expanding operations in the U.S. and Nordic regions. This stance highlights the competitive dynamics within Spain’s railway industry and the broader implications of Sidenor’s ambitions.

Source: thecorner.eu

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