The Spanish government has begun selling off its 66% stake in the country’s largest IT and defense electronics company, Indra Sistemas SA, in a bidding process which is expected to bring it revenues of $330m-$477m. The government is offering an initial 43.9 million shares, which could be increased to 48.9 million if the offer is oversubscribed, which looks likely on current demand. The offer was five times oversubscribed on the first day of bidding on March 8. The process continues until March 15, when the price will be set, with the shares being listed on the Madrid stock exchange on March 23. The price range for bids is Pts1,150-Pts1,488 ($7.52-$9.73).
Madrid-based Indra last year merged its subsidiaries in systems integration, controlled access ticketing and electoral result calculation systems, as well as IT solutions for the defense sector, in order to bolster its attraction to investors prior to the IPO (CI No 3,540). French defense systems and electronics manufacturer Thompson-CSF, together with Spain’s second-largest savings bank, Caja Madrid, and the Banco Zaragozano, collectively control some 25% of Indra. The Spanish government has already decided that it will retain a majority stake in the company after privatization.
