Amber Capital, the fund managed by Joseph Oughourlian, President of PRISA (editor of Five days and El País, among other media), has asked for Indra to be split in two, believing the move could double the value of the Spanish information technology and defense conglomerate. “We are either pushing for a split of the company between tech (Minsait) and defense, or a full sale or merger of the tech division with another company,” he told Bloomberg.
Oughourlian has pointed out that Indra’s defense and information technology (IT) businesses have similar valuations to independent companies. “The IT part can easily be worth between 1.5 and 2 billion euros, the defense part at least 1.5 billion euros,” he said.
Market sources assured CincoDías at the end of October, in the days before holding the last shareholders’ meeting to appoint the new board members, that Indra’s stock could reach 14-15 euros if it buys and sells a share of ITP Minsait. Renta 4 analyst Iván San Félix then suggested that this business unit of Indra could be acquired by competitors or investment funds. private equity. “There is a lot of money on the market to fund operations,” said this expert.
According to Oughourlian, shares of Indra, which were flat throughout the day and down around 9% over the past year, rose 2.77% today to close at 9.64 Euro. The capitalization was more than 1,700 million euros.
Amber Capital currently controls 5.13% of Indra’s capital and has government approval to reach 9.9%. Although the fund has not acquired any shares since September 21, its target is to exceed at least 7%, which would allow it to have a director in Indra, in which SEPI holds a 20% stake.
The option to sell Minsait has already been considered occasionally by Indra, but at the last analysts’ conference, CEO Ignacio Mataix asked for time before resuming analysis of this possibility as much of By’s advice was renewed at the end of October.
Last September, the company’s president, Marc Murtra, indicated that Indra’s goal is to increase Minsait’s margins and focus on the businesses that offer the most value, such as cybersecurity or digital payments, saying that the separation “an option is analyzed”.
Indra increased its revenue by 19% to 2,694 million through September, while its net profit was 116 million, up 0.9% from the same period in 2021. Transportation and defense revenue increased by 4.7% in the nine months, up to 865 million, driven by transport and traffic growth and some defense and security projects, such as Eurofighter and others in Saudi Arabia and Kuwait. Minsait’s rose 19% to 1,829 million thanks to public administration and healthcare business.
ebit was 204 million compared to 188 million in the same period in 2021. ebitda was 282 million, up 9.7%; Minsait accounted for 154 million and transportation and defense for 128 million, but the latter continued to be more profitable: its ebitda margin rose to 14.8% compared to 8.4% for Minsait.