Konzum group to acquire dominant stake in Appeninn Holding

Deals

Konzum Investment and Asset Management and Konzum Private Equity will together acquire a 49.02% stake in Appeninn Holding, the companies said on the Budapest Stock Exchange website on Friday, according to state news agency MTI.

The companies acting in concert in the acquisition will also make a mandatory purchase offer to Appeninn shareholders within the legally stipulated deadline.

The Konzum holding company and Konzum PE will each acquire 24.51% in Appeninn Holding, which owns and operates office buildings and industrial and logistics properties worth more than HUF 22 billion.

Konzum and Konzum PE will purchase 19,511,134 Appeninn shares with a face value of HUF 100 per share for an average price of HUF 228.9 per share.

Commenting on the transaction, Konzum Chairman-CEO Gellért Jászai said the aim is to convert Appeninn Holding into a regulated property investment company (SZIT), thereby benefiting from highly beneficial tax conditions, with Konzum focusing future real estate investments in Appeninn Holding. The company also constitutes an adequate platform for a partial restructuring of Konzumʼs existing real estate portfolio, he added.

The CEO of the Budapest Stock Exchange (BÉT) suspended trading in the shares of Konzum Investment and Asset Management and Appeninn Holding in the morning before the announcement.

Trading in the shares resumed after the announcement, with Appeninn rising 10.76% to HUF 350, while Konzum was up 16.06% at HUF 2,240 thirty minutes before noon.

The Konzum group is among the interests of business magnate Lőrinc Mészáros, a close ally of Prime Minister Viktor Orbán whose wealth has grown spectacularly under the Fidesz-led government.   

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