MADRID (Reuters) -Spanish defence technology company Indra is considering taking over Escribano M&E, a Spanish company owned by the family of Indra’s executive chairman Angel Escribano, Expansion newspaper reported Wednesday, citing unnamed market sources.
Escribano M&E, an engineering company also active in the defence sector, which owns a 14.3% stake in Indra according to LSEG data, would be valued at as much as 1 billion euros ($1.13 billion), the sources told Expansion.
Indra, which is 28% owned by the Spanish state-owned fund SEPI, is set to benefit from the government’s plan to increase defence spending by more than 10 billion euros this year. Its shares rose 61% so far this year.
Angel Escribano was picked to head Indra after Marc Murtra, its former top executive, was appointed executive chairman of telecom giant Telefonica.
Spokespeople for Indra Sistemas and Escribano M&E did not immediately respond to requests for comment.
($1 = 0.8825 euros)
(Reporting by Inti LandauroEditing by Tomasz Janowski)
