Angel Escribano, the former chairman of Indra, is reportedly considering an initial public offering (IPO) for his family's defense firm, Escribano Mechanical & Engineering (EM&E). This comes after a significant shake-up at Indra, where Escribano resigned as chairman in April following a dispute with the Spanish government over a potential acquisition of EM&E by Indra. The Escribano brothers, Angel and Javier, have since sold their 14.3% stake in Indra, which was held through Advanced Engineering & Manufacturing, for an undisclosed sum.
The conflict arose because the Spanish government, Indra's largest shareholder with a 28% stake via SEPI, raised concerns about a conflict of interest regarding Indra's proposed acquisition of EM&E. Angel Escribano had championed the acquisition, but SEPI publicly expressed its reservations, stating that the conflict needed to be resolved before the transaction could proceed. This led to Escribano's resignation and the subsequent shelving of the merger plans. Indra's shares experienced a significant drop, over 12%, on the day the merger was put on hold, reducing the company's value by approximately $1.3 billion.
SEPI's push for Escribano's ouster and the eventual sale of the Escribano family's stake in Indra have paved the way for a new leadership structure. Angel Simon replaced Escribano as the non-executive chairman of Indra. While the potential for Indra to acquire EM&E was discussed again after the Escribano brothers' exit, Indra's CEO, José Vicente de los Mozos, indicated that the acquisition was no longer on the table unless conditions changed. The Spanish government has also proposed a plan to allow Indra's defense assets to be moved into a new subsidiary to facilitate consolidation while maintaining state control over the parent company, which could involve other companies owning stakes in the new subsidiary.
