Investors for Martifer PAO call for auditor to set price

The Portuguese industrial group Martifer is up for grabs through a Public Acquisition Offer (PAO) as its shares on the Euronext Lisbon stock market have tumbled from €8 in 2007 when the company floated, to around €2 now.

Martifer is an industrial and engineering group that operates in three main areas: Metallic Constructions, Shipbuilding, and Renewables & Energy, according to Talent Portugal. They are a Portuguese leader in these segments and have a strong international presence, particularly in Europe, the Middle East, and Africa.

But now the shareholders who want to buy the shares that are trading on the stock market for €2.057 each – an amount seen by the market as low and do not reflect the true value of the industrial group – are asking for an independent auditor to get involved.

“The return offered is based on an average price considering the share values representative of Martifer’s share capital traded on the stock market over the previous six months.

“However, looking at the liquidity for this period, it cannot be presumed that this price reflects a fair value of the company”, the President of the Investors Association (ATM), Octávio Viana told the business daily Negócios.

Last week, a rival industrial group Visabeira Industrial SGPS announced it was launching a general and obligatory Public Acquisition Offer for 100% of Martifer shares, offering €2.057, an offer slightly above the average current value price, and based on the average trading price of the shares traded over the past six months.

However, the Portuguese Association of Minority Shareholders (APAM) thinks the offer is not enough taking into account fundamental trends and values attributed to this kind of company in Europe, arguing that the true value should be somewhere between €3.5-€4 per share.

Martifer was founded by two brothers, Carlos Martins and Jorge Martins. They started the company in Oliveira de Frades, Central Portugal in 1990 with just 18 employees. Today it employs over 3,000 and has become a market leader in metal construction.

Martifer reported strong results for 2024, including a significant increase in profits and a reduction in debt. Operating revenues reached €264.5 million, with €38.2 million in EBITDA (earnings before interest, taxes, depreciation, and amortization). The company also saw a positive net profit of €23 million, the highest since 2009, and a decrease in gross debt to €86 million – all reasons why the company is currently considered undervalued.