As reported, the Madrid-based electronics giant Indra Sistemas SA (CI No 2,335), is anxious to find an international partner so as to strengthen its presence in markets abroad. Speaking recently to El Pais, the president of Indra, Javier Monzon, explained that this partner could take a stake of up to 40% in the company. Indra is currently talking to nine multinationals, six of whom are European, including Cap Gemini Sogeti SA and Sema Group Plc, while the remainder are American, including Electronic Data Systems Corp and Hughes Electronics Inc. We need to form links with large groups of international standing, because our business is increasingly directed towards overseas markets, Monzon said. International operations currently provide Indra with more than 20% of turnover. Its turnover in 1993 was $377m; the projected turnover for 1994 is $472m. The entry of a multinational partner, to be finalised this autumn, is closely linked with the planned increase in capital of $118.11m, recently approved at Indra’s shareholders’ general meeting. This step is to be taken to re-establish the company’s equity base, reduced to $11.54m in 1993, compared to $66.29m in 1992. Indra’s debts currently total $263.78m, $39.37m less than a year ago, due in part to the sale of buildings and factory in Madrid, which Indra later began to rent. Teneo, the group of profit-making companies of the National Institute of Industry, which has a majority 60% stake in Indra, has pledged to contribute to the increase of capital. The holding company would prefer the majority of Indra to remain in Spanish hands, be these public or private, and although it wishes to be the main shareholder, it would be happy for its stake to drop below 51%. On the other hand, Indra’s principal private shareholder, Jose Antonio Perez-Nievas, who was the founder and majority shareholder of the former Ceselsa, now owns 21% of Indra, has not contributed to the fund-raising, saying it is excessive for him, although he would be prepared to come up with a small percentage together with other investors. Investors have to be found Other private shareholders include Sainco (Abengoa Group) 7%, Banco Bilbao Vizcaya 5%, and the Paribas group: 3%. According to Monzon, all three wish to retain a stake in Indra, but if they are unwilling to increase this stake, other investors will have to be found. Indra has undergone radical restructuring this year, which has resulted in a charge of $78.74m, and the company will finish the year with a workforce of 4,000, compared with 5,300 in 1992. Meanwhile, Indra has reduced its lines of business to eight from 27, and its work centres to five from 18. Within Indra Sistemas, 21.1% of turnover is provided by Eritel, Indra’s consultancy and services arm, 11.1% by Disel, automation, control and communications, 57.2% by Ceselsa, defence and dual technology and 2.6% by Inisel Espacio, space systems. Monzon does not foresee any more staff cuts, and says the the company’s consolidation will be completed by the international partner’s arrival. He says the ace up Indra’s sleeve that will attract foreign capital is the company’s order book which shows a rise of 42.7% to $747.4m from $523.6m; 85% of 1994’s orders are from the defence sector, including a $251.97m contract between Ceselsa and Spanish air force for three-dimensional radars.
