Alantra, Others Said To Mull Stake Sale in Spain's Salto Systems

A group of shareholders in Salto Systems SL are weighing a sale of their stakes in the Spanish electronic locks manufacturer, according to people familiar with the matter. The investors could aim to sell between 10% and 30% of their holdings. Alantra Partners SA is among the investors mulling a divestment in Salto, which could be valued at more than €1 billion.

Discussions are in early stages and the investors could decide not to proceed. Alantra and three investment funds—Sofina, Peninsula Capital and Florac—own a combined 30% in Salto, but only Sofina has disclosed the exact size of its holding, which is 12.2%. Company founders and private investors own the rest.

Sofina, Peninsula and Florac acquired their stakes in 2020, when Salto carried out a €125 million capital increase to help fund the acquisition of Austrian rival Gantner. At the time, Alantra sold a 5% stake it already owned in Salto and re-acquired a stake by taking part in the capital increase.

Why the Move Happened

The timing of the potential stake sale aligns with a broader trend of investors re-evaluating their positions in private companies. Salto’s operations span more than 40 countries and had more than €400 million in sales, according to Sofina's website. Investors may be seeking liquidity amid shifting market dynamics.

Alantra has previously advised on similar transactions. In another deal, Alantra acted as sell-side advisor to UNICRE on the divestment of its non-performing consumer finance exposures in Portugal, with a total gross book value of approximately €150 million.

How Markets Responded

Market reactions to the potential sale remain muted, as the discussions are still in the early stages. Representations from Alantra, Salto Systems, Peninsula, Florac, and Sofina declined to comment. However, the sale could attract significant interest due to the company's strong international footprint.

The broader investment landscape has seen a surge in stake sales and divestments. For instance, Olam Group announced progress in its disposal of a 32.4% stake in port operator Arise P&L to Dubai-based Equitane DMCC. This transaction underscores a growing trend among corporations to streamline operations and focus on core businesses.

What Analysts Are Watching

Analysts are monitoring whether the potential stake sale will trigger a broader wave of similar moves in the private equity and venture capital sectors. The outcome of the sale could signal investor sentiment toward long-term holdings in high-growth technology and industrial firms.

The tax implications of such sales have also become a focal point. For example, in India, the Supreme Court recently rejected Tiger Global's plea for tax exemption in its 2018 stake sale in Flipkart. This ruling set a precedent for how international investors from treaty countries can structure their investments in emerging markets.

Investors are also watching how the deal will be structured and whether it will involve a strategic buyer with complementary capabilities or a financial investor seeking value creation through operational improvements. Given Salto's position in the electronic locks and security systems market, a strategic buyer could offer significant growth opportunities.