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Appeninn to acquire office building in central Budapest

Property holding company Appeninn said on the Budapest Stock Exchange that it plans to issue new shares to Konzum II. Property Investment fund in exchange for the real estate property at 48 Ullői utca, Budapest as an in-kind contribution.

Appeninn said the share capital increase will be mandated by a later resolution of its board of directors, pending approval from Hungaryʼs Competition Office GVH, according to national news agency MTI.

The in-kind contribution of Konzum is valued at HUF 4.6 billion, so Appeninn will issue 6,478,874 shares with an offering price of HUF 710 per share. The share capital of the company will increase to HUF 4.73 bln from HUF 4.08 bln and the number of its ordinary shares to 47.37 million from 40.89 million. Konzum II. Property Investment fundʼs share in Appeninn will rise to 13.67% if the deal is concluded.

Appeninn Holding will rent out the 8,145 sqm office building; long-term rental contracts with FHB Bank and Takarekinfo will ensure returns. Appeninn expects to have EUR 1.3 million annual net revenue from the contracts.

Yesterday, holding company Konzum dismissed "unfounded" reports concerning acquisitions of shares listed in Budapest in a statement issued on the website of the Budapest Stock Exchange.

Konzumʼs board "has neither taken nor plans any undisclosed decisions on acquisitions on the basis of which [Konzum] and parties with whom it acts in concert would invest in any other company whose shares are listed on the regulated market operated by the Budapest Stock Exchange", the statement said.

Konzum noted that it is required by law to immediately respond to reports of "unsubstantiated data" with the public disclosure of "data corresponding to reality".