Deutsche Balaton, which holds 89.79% of Hungagent shares, initially made the offer on April 14. A few days later, Hungagent’s board advised shareholders to accept the offer, which gave shareholders a 36% premium over the share’s price at the time. (Since the announcement, the share price has risen to the offer price.)
Deutsche Balaton said it would squeeze out small shareholders, as allowed under the Capital Markets Act, if it achieves a stake exceeding 90% in Hungagent in the buyout. Deutsche Balaton announced in January it had reduced its stake in Hungagent from 90.13 to 89.76%, in a move, according to market insiders, which prepared for an eventual squeeze-out.
Hungagent had consolidated net profits of Ft 159.2 million on revenue of Ft 821.5 million in 2005. It had consolidated net assets of Ft 809.6 million at the end of last year.
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