Spain's markets watchdog probes €195M Indra share sale by Escribano family
What's the deal? Spain's securities regulator, the Comisión Nacional del Mercado de Valores (CNMV), is investigating the sale of a 14.3% stake in defence company IndraDealroom has a profile for this one. Try Dealroom → by the Escribano family, a transaction that netted them €195 million. The disclosure came in a written government response to a parliamentary question from the Vox party.
Why now? Vox asked the government about the "possible use of privileged information" in the deal. The government said the regulator's findings will be analysed and that "the CNMV will adopt the measures that correspond depending on the result of said analysis."
What's the scope? The CNMV said it is gathering information on "the specific circumstances" of the sale by Advanced Engineering and Manufacturing, the parent of the family firm Escribano Mechanical & EngineeringDealroom has a profile for this one. Try Dealroom → (EM&E), and on "the correct compliance with reporting obligations."
How the gains were made: EM&E bought 8% of Indra for €192.54 million in 2023, then added 6.3% for €185.41 million in December 2024 — a total near €378 million. After closing all its Indra positions, including shares, debt, and a JP Morgan derivative, the family recorded net gains of €195 million, according to 2024 accounts filed with the Mercantile Registry.
The financing: EM&E funded the purchases through JP Morgan, pledging its Indra shares as collateral. It used an equity collar derivative to hedge against price swings, at an initial cost of €3,147,009. The loan stood at €372,194,490 at the close of 2024, with two years' grace on interest and principal, payable to February 2029.
What's the endgame? The company said the "significant stake in the shareholding of the defence sector's reference company" strengthened its business model and gave it access to negotiations on key projects. In January 2025, 10.6% of the pledged position was released.
The signal: The probe puts a spotlight on the concentration of ownership and financing arrangements around Indra, one of Spain's leading defence contractors, at a time of rising political scrutiny over the sector.
Read more: Expansión
Image credit: Ken Lund
