Indra has sunk 9.4% on the stock market (it has fallen by close to 10%) after learning yesterday afternoon, with the market closed, that the SEPI (State Society of Industrial Participations) will increase its stake in the company up to 28% from the 18.75% you currently control. Renta 4 experts say that “greater control by advisers from the Government is negative“. In their opinion, this could cause a shift in the company’s strategy. In this regard, they remind the Government’s interest in Indra participating in the consortium to enter the capital of ITP Aero“an entity that we believe would not add value to Indra”, they point out.
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Speculation about ITP already sank Indra at the time, coinciding with the departure of Fernando Abril-Martorell and his controversial replacement by Marc Murtra. The April-Martorell march in May of last year was due to the fact that the Government wanted Indra to re-negotiate the purchase of ITP Aero, in the hands of Rolls Royce, two years after the failure of the talks. However, Fernando Abril-Martorell resisted and this would have accelerated his dismissal as head of the company. We recall that in mid-June 2019, Indra sank on the stock market due to the possibility that I had to do an extension. for that ITP purchase. At the end of July of that year, and after announcing that he was giving up the operation, it shot up 6%.
“This operation (increased participation of SEPI) would result in greater control of the company’s Board by the Government, which in May 2021 led to the fall of the then executive president, Fernando Abril-Martorell. In our opinion, the management of the company is also being very positive under the command of Ignacio Mataix and Cristina Ruiz, who have led it ever since,” explains Iván San Félix, an analyst at Renta 4. It should be remembered that Murtra was appointed chairman without executive duties.
The reasoning of the Government to carry out this increase responds to reasons of greater control of a key company for the country’s defense system. At current prices, the increase in its share would mean an investment of around 150 million euros. Apparently, the Government will propose to appoint two other directors.
NOT EVERYONE HAS THE SAME THINK
Contrary to Renta 4, Bankinter experts consider that this increase in SEPI’s participation is “undoubtedly positive” news. In fact, the announcement leads them to review their recommendation on Indra to ‘buy’ from ‘sell’, citing various reasons.
In the first place, Bankinter emphasizes that the increase in the Government’s participation must go through purchases of shares in the market, since it has few shareholders with relevant packages, and considers that it is foreseeable that the purchase of such a large block of shares could have a significant market impact. On the other hand, he believes that the valuation of the securities is “adequate”.
It should be remembered that Indra publishes its results, with guidelines for 2022, this afternoon, at the close of the market.
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