MADRID, April 25 (Reuters) – Spanish defence technology firm Indra (IDR.MC) is exploring the possibility of acquiring Escribano M&E, a Spanish engineering company operating in the defence sector. This move comes as Indra stands to benefit from the Spanish government’s plan to boost defence spending by over $11.3 billion this year.
Key Details of the Potential Acquisition
Escribano M&E, which has a 14.3% stake in Indra according to LSEG data, could be valued at up to $1.13 billion. The company is owned by the family of Angel Escribano, Indra’s executive chairman. This potential acquisition has been reported by Expansion newspaper, citing unnamed market sources.
Impact on Indra
Indra’s shares have surged 61% year-to-date, driven in part by the government’s increased defence spending plans. The company is 28% owned by the Spanish state-owned fund SEPI. Indra’s rise follows the appointment of Angel Escribano as its head after former CEO Marc Murtra was named executive chairman of Telefonica (TEF.MC).
Reactions and Context
Neither Indra Sistemas nor Escribano M&E immediately responded to requests for comment. The potential acquisition is seen as a strategic move amid increased government defence spending. The euro-dollar exchange rate used for valuation is $1 = 0.8825 euros.
