Gala in talks to sell Núcleo

The firm, which has faced severe economic challenges since its establishment in 2007, is likely to view the sale as its only option to avoid ending up in the hands of its creditors.

A deal could be finalised later this week, although some doubt that the transaction will be signed due to the guarantees the buyer is asking from the Spanish private equity firm. Duro has confirmed that it is considering the acquisition, while Gala's LPs also claim they are aware of the negotiations.

Núcleo was formed four years ago through the merger of technology firms Page and Eliop, which resulted in the third largest business in the sector in Spain. Gala acquired a 62% stake in the firm, which manages and maintains train lines and at that time employed 520 people.

The economic crisis and the paralysis of a number of the company's projects due to lack of financing began to affect the group shortly after the merger. By 2009, Núcleo was experiencing a sharp decline in both sales and profits, rendering the company incapable of repaying the substantial loans taken out by Gala to buy Page in 2006.

This news comes after Núcleo sold its infrastructure division to Construcciones y Auxiliar de Ferrocarriles (CAF) last October. In September, meanwhile, Coronel Tapiocca, a Spanish fashion label owned by Gala, went into administration.

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