Escribano remains at the helm of Indra despite tensions with the Spanish government

MadridIndra has once again avoided the political fray. The current chairman, Ángel Escribano, will remain at the helm of the company despite the recent tensions with the Spanish government, Indra's largest shareholder through SEPI. In fact, a plan B wasn't even discussed at Wednesday afternoon's board meeting, according to sources familiar with the process at the ARA (Spanish Association of Indra's Board of Directors). The company's highest governing body also refrained from questioning the continuity of CEO José Vicente de los Mozos, whose term expires in June. Sources familiar with the process explained to Europa Press that this item was not on the meeting's agenda either. This time, the controversy has been sparked by the potential merger—currently on hold—between Indra and the Escribano Group, also involved in defense, and the potential conflict of interest that could arise (the Escribano Group is not only an Indra shareholder with 14.3% of the share capital).

The operation had placed Indra's top executive in the spotlight, with rumors—never officially confirmed—of a forced dismissal by SEPI, the Spanish government's investment arm and majority shareholder in Indra with 28% of the share capital. Last week, SEPI acknowledged through the National Securities Market Commission (CNMV) its concern about a potential conflict of interest surrounding the operation. In fact, it even anticipated a blockage of the business integration if this conflict was not "resolved," although it did not specify what the solution should be. However, media attention quickly focused on Ángel Escribano's departure. Sources at SEPI reaffirmed this Wednesday that they support an inorganic growth operation, in line with Indra's strategic plan, but that the conflict of interest must be "resolved" first.

However, SEPI itself arrived at Wednesday afternoon's ordinary board meeting without intending to debate Escribano's continued tenure, according to Bloomberg and confirmed by ARA. Therefore, his resignation was not being considered. Nor did he arrive with the intention of stepping aside. "The market supports my plan," the Indra president asserted Tuesday night while receiving the award. Ibex 35 Executive of the Year that grants Five Days, Prisa's flagship publication (publisher ofThe Country), where the main shareholder is Joseph Oughourlian's fund, Amber Capital, which also controls 7.24% of the defense company.

Unsupported doubts

It is unknown whether the doubts that SEPI, that is, the Spanish government, may have about Ángel Escribano's continued tenure are shared by the other shareholders and, therefore, by a majority of the board members who could actually force the chairman's resignation. It should be noted that SEPI only holds three of the fifteen seats on the board. Of the other shareholders, only the Basque company SAPA has expressed misgivings about the executive. However, this company only has one seat (7.49% of the share capital), so they do not constitute a majority.

This Tuesday, Ángel Escribano took advantage of his speech at the award ceremony of Five Days To boast about the work done so far at Indra, but above all about its results. Before other senior executives from some of Spain's leading listed companies, the president of Indra asserted that the company is the fastest-growing stock on the Ibex 35 in 2025, with a 184% increase. He also maintained that the defense company is "deeply involved in building one of the most important industrial and technological projects for Spain and Europe."

He had spoken along the same lines hours earlier, when he appeared (his presence was not listed in the press invitation) at the signing of the agreement between Indra and the South Korean company Hanwha, one of the world's largest defense companies, to develop innovative self-propelled artillery systems in Spain for the Ministry of Defense. In fact, the event demonstrated the positive relationship between the company and the ministry headed by Margarita Robles, to whom Escribano conveyed the "commitment" to fulfilling the agreements.

An operation, for now, on hold

The standoff between Pedro Sánchez's government and Escribano arose after the State, which sponsored his appointment as president in January 2025, acknowledged a conflict of interest surrounding the deal between Indra and the Escribano group. This was stated last week by SEPI (the Spanish State Holding Company), despite the fact that the business move had been part of the public debate for months and had even reached the board of directors. Sources within SEPI argued that the recognition of this conflict had not come until now because the deal had not been finalized. Following the Spanish government's warning, it was Ángel Escribano himself who decided to shelve the potential business merger. The board meeting this Wednesday afternoon, therefore, ended without any drastic decisions and remained merely the first contact between the members of Indra's highest decision-making body after the standoff erupted publicly last week.