Investors receive the announcement of Ferrovial’s change of headquarters to the Netherlands with optimism. The company’s shares have accumulated a rise of more than 4.5% on the stock market during the last three days, after also revealing its intention to list on the Dutch market at the same time as in Spain, to later do so in the United States.
The company unexpectedly announced this corporate movement shortly before 6:00 p.m. on Tuesday through a brief presentation sent to the National Securities Market Commission (CNMV). The first reactions came the following day from the Minister of Agriculture, Fisheries and Food, Luis Planas, who, during his participation in some ‘Informative Breakfasts’ of Europa Press, asked Ferrovial to clarify its continuity in Spain in light of this change.
Planas was followed by the rest of the ministers, who unanimously rejected this decision, while the opposition charged the Government for not creating an optimal climate for business through tax increases. However, investors that day welcomed this news and pushed the company’s share price up 0.6%. Despite the fact that some minorities could oppose and truncate the operation if the explicit rejection exceeds 2.57%, a joint action of these to reject their transfer is not foreseen.
On Wednesday afternoon, the company gave its first public response through a video of its CEO, Ignacio Madridejos, asking that “no one doubt” the continuity of the company in Spain, ensuring that it will continue to contribute fiscally in the country.” like he’s always done.”
On the following day, Thursday, the titles of the company chaired by Rafael del Pino went back to boost another 1.17%. That day, the Fitch rating agency ruled out that this decision will significantly affect its credit rating, currently ‘BBB’, beyond the negative impact that compensation to shareholders who oppose it will have on the debt. The unions have also described the behavior of the Spanish multinational as “socially irresponsible” and have linked it to “political reasons”, while the employers have asked to respect their decision, demanding “not to demonize” Spanish companies.
On Thursday afternoon, when the Government had already assured that it would analyze and study all the reasons given by the company for leaving, Ferrovial published its “road map” to carry out the operation, in which it detailed that some employees will move to the Netherlands, although always on a voluntary basis.
Despite all the events, already this Friday the company’s shares have boosted another 2.73%, to trade at 27.46 euros per title. Analysts believe that the news will not have any impact on its price, since it does not imply any operational change, although they expect a revaluation in the future once it begins to take advantage of its greater projection and international visibility from the United States.
The latest movement has come from the Association of Construction Companies and Infrastructure Concessionaires (Seopan), which represents the largest companies in the sector in Spain, including Ferrovial, which has announced to the Government that it will exercise as many actions as may correspond to it in the event of unequal or discriminatory treatment towards the company.
On the other hand, the large Spanish construction companies that make up, together with Ferrovial, the ranking of the largest companies in the sector -ACS, Acciona, Sacyr, and OHLA, with the exception of FCC- have indicated a ‘EP’ that have not considered transferring their headquarters to another country, and some of them even affirm that it does not fall within their future plans either.
