The Comisión Nacional del Mercado de Valores (CNMV) has taken significant action by suspending the trading of Talgo's stock on the stock market. This decision was made effective immediately on February 1, 2023, due to recent developments concerning Sidenor’s improved acquisition offer for 29.9% of the train manufacturer’s shares.
Late on January 31, Sidenor announced its elevated bid, raising the offer from €4 per share to €4.15 per share. The rise doesn’t stop there, as it also includes a conditional payment of €0.65 per share, contingent upon meeting specific business objectives. This brings the total potential value of Sidenor's offer to €4.80 per share, substantially higher than the last closing price of Talgo’s stock, which was €3.91.
According to the CNMV, the suspension was necessary due to “circumstances” compelling enough to warrant such action, as they aim to maintain market stability amid significant news like this acquisition bid. Sidenor's approach has garnered backing from various parties, including the Basque Government, BBK, and the Fundación Vital, who are collectively investing €155 million to support this acquisition initiative. Each contributing institution has committed specific amounts—Sidenor, the Basque Government, and BBK will contribute €45 million each, with Fundación Vital providing €20 million.
Mikel Jauregi, the counselor of Industry, Transition Energy, and Sustainability for the Basque Government, expressed strong support for Sidenor’s bid at the opening of the Congreso Puerto Sostenible. Jauregi described it as "a clear commitment from the Basque Government for industry and roots," emphasizing the importance of keeping Talgo's operations tied to the Basque region.
Jauregi also acknowledged the need for caution, stating, "The ball now is in the seller's court," indicating the ultimate decision lies with Trilantic, the British fund currently holding the majority stake. Their previous resistance centered around the valuation of Talgo, but Sidenor’s new offer significantly narrows the gap between current offers and the €5 per share price previously floated by Hungarian company Magyar Wagon, which was blocked by the Spanish government due to concerns over national security and ties to Russia.
Attention now turns to the other interested acquirers: Polish company Pesa and Indian firm Jupiter Wagons. Both have shown interest, and with the February 14 deadline looming, Trilantic must weigh their options carefully. The involvement of Pesa is particularly notable, as the Polish government has hinted at merging its interests with local investors to align with the demands of Madrid's leadership.
With Talgo employing close to 2,500 workers across its plants—most prominently located in Rivabellosa, Alava—stakeholders are intensely focused on the potential industrial impacts of this acquisition. Should Sidenor's offer succeed, it may solidify Talgo's roots firmly within the Basque community, enhancing its operational capabilities and future investments. The company’s significance to the region is acknowledged by various stakeholders, including political leaders who have consistently advocated for domestic ownership of the firm.
Among the community, there is cautious optimism surrounding Sidenor's bid. The proposed financial injection is not merely about acquiring shares; it connects deeply with the industrial heritage and local employment, which is why many view it favorably. Jauregi's comments reflect this sentiment, as he reiterated their commitment to ensuring Talgo remains tied to its historical roots and is positioned for sustainable growth.
The CNMV’s swift responsiveness to the developments surrounding Talgo highlights the dynamic nature of financial markets and the careful balance regulators must maintain. While Talgo’s stock remains suspended, the looming decisions from Trilantic and their next steps will undoubtedly shape the future narrative of the train manufacturing giant.
Overall, the next few weeks promise to be pivotal for Talgo and its employees, as the spotlight on potential ownership changes will influence not just internal dynamics but also broader economic ramifications within the region. Investors, employees, and advocates hold their breaths, eager to discover the outcome of this high-stakes business maneuver.