Indra’s crash on the stock market: investors scared by the government’s assault

Crash in Indra on the stock market after the General Meeting of Shareholders (JGA) that this Thursday approved the immediate dismissal of four independent directors, including Alberto Terol, which allows the state to take control. This Friday, the price of its shares fell 14.5%, to 8.63 euros, although it has plummeted more than 21% at the worst time of day.

In a single session, the technology and defense company has lost 260 million euros of market capitalization. However, company watchers draw attention to the unusual volume of stock trading registered in the shares of the company, after the president of the CNMV, Rodrigo Bonaventurerate yourself this Friday “striking and worrying” what happened in Indra.

The trading volume soared this Friday more than 10 times above normal and, at closing, 8.2 million shares were traded for a value of 64 million euros. It is the equivalent of about 4% of the company’s capital. Financial sources attribute it to the possible exit of institutional investors from the shareholding after the basic rules of corporate governance in the JGA have been broken. Funds such as the sovereign of Norway (3.6%), Fidelity (1.9%) or T-Rowe (3.1%) They have percentages equivalent to what has moved today on the stock market.

Mass dismissal of independent directors

The market punishes decisions approved at the Shareholders’ Meeting with strong sales. Specifically, yesterday the dismissal of four of the thirteen directors of the technology company was approved by 53.06% of votes in favor at the proposal of the Amber fund, controlled by the president of Grupo PrisaJoseph Maria Oughourlian, and in order to “give greater cohesion to the council.”

In addition, the State Industrial Participation Society (SEPI), SAPA Placencia and Amber Capital turned Indra’s board upside down after appointing Jokin Aperribay as proprietary director by the Basque group. Aperribay, a member of the founding family of SAPA Placencia, has received 53.1% of the votes to be a director, despite having a report against of the Remuneration Committee. A percentage practically identical to that of shareholders who have supported the dismissals.

A representative of Amber Capitalwhich has just over 4% of Indra and is Prisa’s largest shareholder, made a request during the interventions to introduce an item off the agenda of the meeting with the aim of dismissing Alberto Terol, Carmen Aquerreta, Ana de Pro and Enrique de Leyva. Also, the reelection of Isabel Torremochaalso independent, did not go ahead, so the newly appointed Francisco Javier Garcia Sanz Y Silvia Iranzo they remain as the only independent ones.

Renta 4 analysts value the news as “negative” which “confirms our forecast for several months that the State would finally come to control the company“. Indra’s crisis was unleashed last year when SEPI promoted the dismissal of Fernando Abril Martorell to start a “new stage of the company”.

They believe that with the change of control they open “many uncertainties” such as the management capacity of the new management team, the suitability of making acquisitions, the possible sale of Minsaitthe response to the demands of the ESG criteria in its investment decisions and the possibility that the CNMV forces SEPI to launch a takeover bid for 100% of the company.