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TEC - Tecnocom Telecomunicaciones Y Energia SA News Story

€4.75 0.0  0.0%

Last Trade - 05/05/17

Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £376.5m
Position in Universe th / 725

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

MADRID, Nov 29 (Reuters) - Spanish technology and defence 
company Indra  IDR.MC  has made a takeover offer for information 
technology company Tecnocom  TECM.MC  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 
 ((paul.e.day@thomsonreuters.com; +34 91 585 83 08; Reuters 
Messaging: paul.e.day.thomsonreuters.com@reuters.net)) 
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