ADVERTISEMENT

Konzum moves to BÉT Prime category, discloses acquisition

Deals

Photo courtesy Budapest Stock Exchange

Listed holding company Konzum on Wednesday said it would acquire a number of tourism properties on Lake Balaton with the issue of shares through a private placement. Earlier in the day, trading in Konzum shares, newly moved to the Equities Prime category, was suspended on the Budapest Stock Exchange (BÉT).

Konzum will acquire the BLT Group, whose Balatontourist business owns ten campsites around the lake, as well as the Hotel Bál Resort in Balatonalmadi, at the lakeʼs northeastern corner, Konzum said in a disclosure posted on the website of the Budapest Stock Exchange.

The new shares will be issued at a price of HUF 3,141, according to the announcement. Konzum said it expects the transaction to be closed by April 30, pending approval of the share issue by the National Bank of Hungary (MNB), as well as consent from lenders and affected third parties. Once the deal is closed, Balatontourist and Hunguest Hotels, which Konzum had earlier said it would acquire, will be put under joint management.

"We want to establish Hungaryʼs biggest commercial accommodation business, one that can become a leader on the domestic tourism market as well as the region with a broad offering, ranging from campsites to three and four-star hotels," Konzum Chairman-CEO Gellért Jászai said in a statement issued by the companyʼs PR agent.

Konzum announced in December that it would raise its capital by HUF 30 billion to HUF 50 bln in several steps to cover acquisitions.

Earlier in the day, shares of Konzum were moved to the BÉTʼs Equities Prime category, effective Wednesday. The reclassification was made at the request of the issuer. Trade in Konzum shares was suspended for Wednesday pending the announcement that came later in the day.

Konzum is directly and indirectly majority owned by the billionaire businessman and investor Lőrinc Mészáros, a close ally of Prime Minister Viktor Orbán, whose wealth has grown spectacularly since the present government ascended to power in 2010. Jászai owned 10.43% of the shares as of last December.

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.