Chairman and market regulator of the National Securities Market Commission (CNMV), Rodrigo Buenaventurastated these days Congress of Deputies this situation railway becomes a philosophical problem as the company claims the impossibility of something without explaining why (listed on Spain-based Wall Street). did not give details good luck If it refers to any of the principles of Aristotelian logic, however, that gives the impression that Ferrovial is more of a problem with Aristotelian logic. wrong measurement effect and results your decisions.
First of all, decide railway related to move your headquarters to Holland it’s legal. in Spain as a member European Unionmanages freedom of establishment And free service delivery.
Second, the decision is strategically correct, as endorsed by major investors. chris hohnresponsible for the TCI fund, the largest shareholder after family pineincreased its participation to 7% as open support for its plan. Raphael del pino, head of the company. Ferrovial already owned North America more than a substantial part of their work ( 82% revenue) expects that “the majority of the group’s current and future opportunities and growth will stem from it”. Actually, 92% of investments made from now until 2027, it is associated with that area, like the new terminal 1. New York JFK airport (9,500 million).
benefits of change
Ferrovial considering relocating its headquarters to the Netherlands It has a double advantage. First, it’s a jurisdiction AAA credit ratingwhich translates better financing conditions for businesses and one reliable legal system“Secondly, it makes the company’s job easier. Quote directly in the United States, “a strategic goal”. Reasons: “one of the world’s largest infrastructure markets”, facilitates “executing corporate transactions” (read, mergers or acquisitions) and reinforces its brand’s reputation in the region.
So far, a complex decision, but with the rationale to defend the interests of shareholders. So where does the rising dust come from? It is a company fault when measuring the impact of a decision that also conflicts with the decision. political moment.
The way the decision was communicated was already a manual error. Just two pages explaining the transfer of headquarters. It may have been enough for the market and the shareholders, but it clashed with political needs for three reasons: First, because there is a government in Spain that does not distinguish itself by preserving its etiquette and attacks them harshly when it believes. appropriate or served your interests; Secondly, because the decision is conveyed to the highest authorities (Ministry of Economy) as soon as possible. a few hours before making it publicdid not contribute to the development of relations either; and third, because that succinct statement included a spirit-inflaming statement that states that the Netherlands is a country with legal certainty and is tantamount to saying that Spain is not.
Not only did the government flood in to criticize the decision, it also deployed all his artillery against Ferrovial. The first purpose was to prevent the spread of the example among other large companies, which is a international reputational blow (with corresponding selection cost) Pedro Sanchez.
From there, the Government focused on overthrowing the operation. And for that, he started by refuting Ferrovial’s main argument for explaining the headquarters transfer. Both the market regulator CNMV and the stock market executive BME agreed in their analysis: there is nothing to prevent Ferrovial from being listed in New York from Spain. “It may not be easy but It’s not impossible“, confirms the head of CNMV. Moreover, according to some media outlets, the company, which has been analyzing this option for a year, has never consulted the CNMV or BME about this possibility. permission has already been obtained and therefore, Leaving statement wrong to ease transition to Wall Street.
An unexpected turn?
The next council meeting will be held on 13 April. Shareholders meeting to certify Ferrovial’s farewell and an unexpected turn in the market is no longer ignored. It should not be forgotten that there is a clause of 500 million Euros, which is the upper limit that the company will pay to those who voted against the operation, and that its shares are requested to be purchased for 26 Euros. In order for this buyback, which would in theory turn the operation upside down, cost the company more than 500 million, it would be enough for 2.57% of the capital to demand it. Leopoldone of his brothers Raphael del pinoHe stated that he did not like the transfer of the general directorate, which was thought to be not close to the family. Leopoldo del Pino They have 4.15%, but Ferrovial assures they won’t demand a refund. The problem is, it may have opened the door to other shareholders.
Inside railwayAs an integral part of the communications team, they know they are not interested in further angering the vice president. Nadia Kalvinowhich at that time threatened to search for all legal loopholes and at the same time drew the attention of the Treasury.
With the shareholders meeting still a few days away, there are already those who are starting to ask if Ferrovial will eventually try to find a compromise solution that does not require a backlash but prevents further attacks on its reputation. As an example, suggest a joint headquarters. The topic is entering the final turn..