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Spain's Indra makes 4.25 euro a share takeover offer for Tecnocom
November 29, 2016 / 9:15 AM / a year ago

Spain's Indra makes 4.25 euro a share takeover offer for Tecnocom

MADRID, Nov 29 (Reuters) - Spanish technology and defence company Indra has made a takeover offer for information technology company Tecnocom for 4.25 euros per share, valuing it at around 305 million euros ($324 million), excluding treasury stock.

Indra’s offer, which must be cleared by Spain’s market regulator, is at a 11.5 percent premium to Monday’s closing price. The deal will provide annual cost savings of more than 40 million euros, the company said.

It is the first major acquisition by Indra, whose business ranges from defence to healthcare services, since it laid off thousands of staff last year in an effort to make annual savings of up to 200 million euros.

Analysts welcomed the deal, with broker Haitong saying although the price did not look cheap, significant cost savings and a good fit meant Indra shares were likely to rebound after an initial dip once they opened for trade.

Share trading in both companies, which had been suspended after the announcement, will resume at 1030 local time.

Indra will pay 60 percent of the offer in cash and 40 percent in its shares valued at 9.85 euros per share based on the average closing price of the last five days.

Tecnocom shareholders holding some 52.7 percent of Indra’s capital have subscribed to the offer, Indra said. ($1 = 0.9425 euros) (Reporting by Paul Day; Editing by Sonya Dowsett and Louise Heavens)

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