SEPI Sociedad Estatal de Participaciones Industriales

The Chairperson of the state-owned industrial holding company Sociedad Estatal de Participaciones Industriales (SEPI), Mr. Ramón Aguirre, appeared today before the Lower House of Parliament for explaining how took place the deal for the acquisition of 20.1% of INDRA to the Grupo BFA-Bankia.

It must be remembered that on August 2nd, 2013 SEPI acquired from Grupo BFA-Bankia a significant participation of 20.1% in INDRA for the amount of 336.9 M€. This transaction took place through an accelerated private placement within the framework of the Reorganization Plan for the Grupo BFA-Bankia 2012-2017 regarding non-strategic assets which was agreed between the European Commission, the Kingdom of Spain and the Grupo BFA-Bankia, as a result of the Decision of the EU Council on July 23rd, 2012 and the EU Commission’s Decision on June 27th, 2012.

Mr. Aguirre highlighted some of the main reasons why the state-owned holding company acquired the 20.1% shareholding in Indra from the Grupo BFA-Bankia, once the transaction was authorized by the Council of Ministers. Among them, “the uncertainty which generated on Indra’s shareholding reorganization the requirement on the Grupo BFA-Bankia to sell its participation, the importance of the Company’s activities on strategic sectors for national defense and security and, of course, INDRA’s value as one of the most important technological companies with an international presence, which reinforces the Spanish brand”.

Furthermore, he recalled that “SEPI’s entry into Indra’s shareholding structure seeks to preserve the shareholding stability in a company which represents one of the pillars in our technological basement and in our international presence. SEPI’s presence in Indra is focused on collaborating in the preservation of the industrial project of an international technological company with a big investment and innovation capability”.

Transaction’s details

With regard to the transaction’s details, SEPI’s Chairperson said that it was thought necessary to have a financial advisor, in this case, the BBVA. Once the price of the share closed at 10.45 € on the equity markets on August 2nd, 2013, the date chosen for carrying out the deal, SEPI reached an agreement with the Grupo BFA-Bankia for acquiring 33,057,734 shares, 20.14% of the capital, through a direct over-the-counter transaction, at a price of 10.194 € per share, which amounted to a 2.45% discount, for a total amount of 336,990,540.40 €, which was paid on August 7th, 2013. It is worthwhile mentioning that the transaction was financed with SEPI’s own resources, taking advantage of the cash generated during the previous months as a result of the sale of the shares of the AIRBUS Group.

“Today we can say that the acquisition transaction was well received by the market since the value has evolved in a very satisfactory manner; from the acquisition amount of 336,990,540 € at a listed price of 10.19 € to the current value of 467,436,400 € at a listed price per share of 14.14 €. At this moment, the value of SEPI’s participation in INDRA during the period from August 2013 to March 2014 has experienced a 38.70% increase, which means a potential capital gain of 130,445,860 €”, he concluded.

Indra is Spain’s number one consulting and technological multinational, and one of the most important in Europe and Latin America. Innovation is the basis of its business and sustainability, having invested more than 550 M€ in R&D during the last three years, a figure which places it among the leading European companies in its industry in terms of the investment made. With a turnover of about 3,000 M€, of which around 60% come from the international market. It has more than 42,000 professionals, and it develops its activities in 128 countries. Furthermore, Indra is listed on the Madrid Stock Market and is part of its stock index IBEX 35, which is made up by the 35 largest and most liquid stocks in Madrid’s Stock Market.