Spain authorizes Amber Capital to increase stake in Indra to 9.99%, boosts shares

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The Spanish government has allowed fund Amber Capital to increase its stake in defense company Indra (BME:IDR) to 9.99%, Indra reported on Friday.

According to Refinitiv data, Amber Capital owns 4.2% of Indra and would become its second largest shareholder after the State Industrial Participation Company SEPI, which at the beginning of the year increased its stake to 25.2% from 18, 75%. Indra shares rose 2.25% on Friday, leading gains in the Spanish Ibex-35 index, which fell 1.03%.

Indra has yet to replace seven independent board members who were removed or resigned in June after shareholders unexpectedly agreed to give the government more control. On Friday, the company said the selection process for its independent directors was well advanced and nearing completion.

The appointments committee is expected to meet on Monday, Indra added. The greater role of the Government in the company occurs on the eve of the launch of a fighter aircraft program, and at a time when Spain intends to increase defense spending after the Russian invasion of Ukraine. On September 13.

The Government authorized the joint foreign investment of Amber Capital UK and Amber Capital Italia SGR in Indra “up to a joint participation in shares, or other financial instruments with shares as underlying value, representing 9.99% of its social capital,” Amber said in a letter. At current market prices, the stake of around 10% in Indra is worth around 140 million euros ($139.69 million).

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