Amber Capital has requested that the Indra Sistemas company be split into two separate companies, one comprising the Information Technology (MinSait) and the other Defense Systems divisions. This move could double the value of the group, according to the investment fund, which holds 5.13% of Indra’s capital.
“We are pushing for a split of the company between Technologies and Defense or an outright sale or merger of the technology business with another company,” Amber President Joseph Oughourlian said in an interview with Bloomberg.
Oughourlian, also president of PRISA (the publishing group of EL PAÍS), has defended that Indra’s technology part could “easily” be worth between 1,500 and 2,000 million euros and the defense part “at least 1,500 million euros” for separately what would reveal a part the hidden value of the company.
Amber has state approval to reach 9.9% of capital, though it hasn’t bought any shares since Sept. 21. For its part, the state is the main shareholder through the Sociedad Estatal de Participaciones Industriales (SEPI) with 28%, followed by the Fidelity fund, which controls around 11% of the company through various instruments, and the Basque defense company Sapa, which has 8%.
Indra employs more than 52,000 people and had sales of almost 3.4 billion euros (3.5 billion US dollars) in 2021. The company’s shares have fallen 9% over the past year, giving it a market value of €1,700 million. An Indra spokesman declined to comment on the statements.
Oughourlian said that the fact that Indra was already operating separately between the two businesses means the groundwork for a split of the group has been laid. “Spain’s defense segment is really fragmented,” said the executive. “This move could also help consolidate the industry,” he added.
Indra’s share price rose 2.77% on Monday to $9.64 per share.
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