MADRID (Reuters) -Spanish defence technology company Indra said on Friday it was analysing different opportunities in the defence sector, including Escribano, but no decision had been taken.
The company’s statement followed a report in Spanish newspaper Expansion on Thursday which said that Indra was considering taking over Escribano.
“Within the framework of its strategic plan, it carries out an ongoing process … of analysing different opportunities with relevant players in the defence sector, including Escribano, with no decision having been adopted as of today,” Indra said.
Escribano M&E is an engineering company also active in the defence sector owned by the family of Indra’s executive chairman Angel Escribano.
Escribano M&E holds a 14.3% stake in Indra, according to LSEG data. It would be valued at as much as 1 billion euros ($1.13 billion), Expansion cited sources as saying.
Indra, which is 28% owned by Spanish state-owned fund SEPI, is set to benefit from the government’s plan to increase defence spending by more than 10 billion euros this year. Its shares have risen 56% so far this year.
Angel Escribano was picked to head Indra after Marc Murtra, its former top executive, was appointed executive chairman of telecom giant Telefonica.
Spokesperson for Escribano M&E did not immediately respond to a request for comment.
Indra shares were down 3% on Friday afternoon, the worst performance on Spain’s blue-chip Ibex 35 index, which was up 1.1%.
($1 = 0.8825 euros)
(Reporting by Inti Landauro. Editing by Tomasz Janowski and Mark Potter)
