Overview

• The Spanish state industrial holding SEPI will invest €45 million for around 7.8 percent of Talgo shares and extend a €30 million convertible loan to the train maker.
• Last week the Basque government authorized its €75 million contribution through Ekarpen and private partners to complete the co-financing structure.
• The combined €150 million package is designed to strengthen Talgo’s balance sheet and support negotiations on its €409 million debt with more than 20 banks.
• All related administrative approvals must be in place before August to enable a Basque-led consortium to acquire a 29.7 percent stake from Trilantic.
• The rescue deal paves the way for Talgo’s headquarters to move to Euskadi in October and safeguards about 700 direct jobs plus 5,000 indirect positions.