Indra cools its euphoria on the stock market due to the possible delay of the merger with EM&E
Indra’s price plummeted around 5.3% around 2:00 p.m. this Monday, to 43.5 euros per share, in a context marked by the possibility that the merger with Escribano Mechanical & Engineering (EM&E) be delayed until the first quarter of 2026 due to the efforts to evaluate the exchange ratio with which the operation is planned to be executed.
Both the newspaper ‘La Vanguardia’ last Friday and ‘El Confidencial’ this Monday, point out that on the company’s board of directors there have been movements aimed at wait for the closing of the 2025 accounts of Indra and EM&E to refine the valuation of the latter company in order to optimize the exchange equation.
In this sense, XTB analysts highlight that “the independents want to incorporate the closed 2025 accounts and updated audits of Indra and EM&E so that the exchange equation and price are based on more recent and externally reviewed financial information.”
“They are concerned that an eventual peace agreement or de-escalation in Ukraine could significantly affect the future value of the defense business and they want that scenario to be taken into account in the valuation. The key revolves around fears of paying an ‘exorbitant’ price compared to previous valuations (figures greater than 2,000 million), in a context in which the sellers are both shareholders and relevant directors of Indra,” added the XTB analysts.
It should be remembered that Indra established an ‘ad hoc’ commission to analyze the conflicts of interest of the operation, given that the president of Indra, Ángel Escribano, is co-owner of EM&E along with his brother and president of EM&E, Javier Escribano, who is also a director of Indra. In fact, EM&E has 14.3% of Indra and is the company’s second largest shareholder, behind the Government, which owns 28% through the State Industrial Participations Company (SEPI).
In this context, in which the agreement for the merger operation seems to be delayed until the first quarter of 2026 (initial forecasts pointed to before the end of this year) and in which a peace agreement in Ukraine seems closer, Indra’s price has fallen almost 10% since last November 4 it reached close to 51 euros per share.
