Changes in Talgo’s Ownership Structure
A significant shift has occurred in Spain’s industrial sector: a group of investors controlling Talgo has agreed to sell nearly 30% of the company’s shares to a consortium from the Basque Country. The deal is valued at €156.7 million and is expected to close no later than January 31. The new terms set a fixed share price of €4.25, higher than the initial offer. Additional payments are possible only if the shares are resold at a higher price.
Who Are the New Owners?
The consortium is led by Clerbil, linked to Sidenor president José Antonio Jainaga. Joining him are the state fund Finkatuz and banking funds BBK and Vital. Together, they will acquire 36.8 million shares, most of which will come from Pegaso, with the remainder from other shareholders. Following the deal, Jainaga, Finkatuz, and BBK will each hold 8.5% of the shares, while Vital will have 4.2%.
Financial Details and New Terms
Initially, a smaller fixed payment and a more complex system of variable payouts were discussed, but Talgo’s worsening financial performance led to a revision of the terms. The situation was influenced by penalties from Renfe over delayed delivery of high-speed trains, as well as difficulties refinancing debt. Now, the variable payment will depend solely on a possible resale of the shares within two years of the deal.
Market Reaction and Next Steps
Following the announcement of the agreement, Talgo shares surged, posting an almost 10 percent gain in a single day. An extraordinary shareholders’ meeting is expected soon to approve the new financial structure. A key step will be the approval of a new debt financing scheme, which includes €650 million in loans for six years and an additional €120 million credit line.
Impact on the company’s future
Despite losses in the first half of the year, Talgo retains a record order book of nearly €5 billion and aims to grow it to €7 billion. The company also plans to attract state capital: SEPI will become a shareholder through a capital increase, receiving 7.8% of shares for €45 million and acquiring another €30 million in convertible bonds. New Basque investors will also purchase similar bonds for €75 million.
Context and additional factors
The deal comes amid an investigation into Hainagi over alleged violations of export restrictions, but Sidenor representatives stress full compliance with all regulations. Despite financial challenges and external pressures, Talgo expects to strengthen its position in the high-speed rail sector and launch a new growth phase focused on industrial and technological development.
