Talgo’s stock edged up slightly in early trading, adding about 0.7 percent as investors digested the news of a formal takeover offer. The public acquisition bid was launched on Thursday by the Hungarian group Magyar Vagon, a consortium with 55 percent private investors and 45 percent state-backed Corvinus Fund. Talgo’s shares hovered near 4.41 euros, still below the offer price of five euros per share proposed by the Hungarian consortium. Magyar Vagon values the Spanish train maker at 619 million euros, marking a 14 percent premium to Talgo’s closing price from the previous day and a 41 percent premium to the stock’s trailing 12-month average prior to market chatter in November about the deal.
The bid, made public just one day after Spain’s government signaled its opposition to the move amid suspicions about potential Russian influence behind the involved corporate group, has been clarified to stand on a straightforward condition. The offer would require the sale of half of Talgo’s capital from investors who participate in the consortium. Initial arrangements suggested no major barrier to this requirement since Pegasus, Talgo’s main shareholder, holds around 40 percent. The investment vehicle that channels the funding includes the British private equity firm Trilantic and business figures such as Juan Abelló, who have been negotiating the bid since the process began.
Shortly after the bid was formally registered with Spain’s National Securities Market Commission, Trilantic described the price as friendly and positive, valuing its stake at nearly 248 million euros. In response, the Hungarian group sent a letter to Talgo’s board on March 6, and the board unanimously confirmed that the offer is amicable and that the consideration is attractive to Talgo’s shareholders.
According to the information released, the eastern European investor group posted revenue of about 254.7 million euros in 2022, a figure well short of Talgo’s 2022 turnover, which surpassed 652 million euros. That result placed Talgo’s sales well above the Hungarian group’s revenue, highlighting the scale gap between the two players involved in the potential transaction.