Indotek to acquire Mid Europa Partners stake in Wabererʼs
Mid Europa Partners has agreed to sell a 24% stake in Hungarian road haulage company Wabererʼs International to Trevelin Holding, a unit of Hungarian property developer Indotek, Wabererʼs said in a disclosure ahead of the opening bell on Monday, according to a report by state news wire MTI.
Mid Europa Partners also granted Indotek a call option over its remaining 47.99% stake in Wabererʼs.
The transaction, which requires competition authority clearance, is expected to close by the end of Q1 2021.
Mid Europa Partners said in July that it was weighing the sale of its stake in Wabererʼs, responding to speculation in the press. Mid Europa Partners said a consultant had been hired "to help it consider strategic options for its investment in Wabererʼs, including the sale of its stake".
Wabererʼs has booked losses for several quarters, but its management has voiced a commitment to turning the business around.
"We look forward to being supported by Indotek Group in our efforts to complete the restructuring program and further build on the strengths of Waberer’s in the long-term," Wabererʼs CEO Barna Erdélyi said in the companyʼs disclosure released on Monday.
Indotek, majority-owned by its CEO, Dániel Jellinek, counts more than 20 office buildings, several hotels, including the landmark Gellert Hotel, and many industrial and warehouse properties in its portfolio. It entered the commercial real estate market in 2014, acquiring 20 shopping centers in Budapest and other big cities around the country. In January 2020, Indotek acquired the fund manager Diófa Alapkezelő from Takarékbank.
In a separate statement issued on Monday, Indotek said it aims to use synergies with Wabererʼs "to the fullest extent" and sees its stake in the company as a "long-term strategic investment", but it does not wish to acquire a controlling stake.
Indotek plans to sell the option rights it has acquired to "professional investors with experience in the sector".
Indotek said it has adopted a strategy of investing in companies that have been put in difficult economic situations because of the crisis, sorting out their capital positions, restructuring them, and putting them on a growth path, thus increasing their value, according to the report.
Hungary Gasoline Prices 3% Over Regional Avg
Hungary to Address Future of Cohesion Policy During EU Presi...
Cordia’s Marina City Project Begins
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
