Konzum seeks to raise share capital to HUF 30 bln
The board of listed holding company Konzum has proposed an extraordinary general meeting on December 8, 2017, to give the board a mandate to raise the companyʼs registered capital until it reaches HUF 30 billion, according to the agenda of the EGM posted on the website of the Budapest Stock Exchange on Friday.
The authorization would be for five years and would allow the board to raise the companyʼs share capital at a frequency means of its choosing and at an issue price other than the face value, according to state news agency MTI.
The mandate would also authorize the board to issue convertible bonds or guarantee such bonds.
Péter Fekete, deputy CEO of Konzumʼs investment fund manager, recently said at a conference that the holding aims to expand in the banking and capital markets, energy, tourism, property, media, industrial and IT sectors in future, both organically and through acquisitions in Hungary and in Central and Eastern Europe. He added that Konzum could finance its growth with bonds or share issues, in addition to bank credit.
Konzum had share capital of HUF 521.5 million and shareholdersʼ equity of HUF 597 mln at the end of 2016, according to audited and consolidated IFRS figures.
The company has been expanding quickly this year, acquiring a dominant stake in the recently reprivatized MKB Bank, and listed companies Opus Global (formerly Opimus) and Appeninn Holding, among others.
Konzum is directly and indirectly majority owned by the investor Lőrinc Mészáros, a close ally of Prime Minister Viktor Orbán and mayor of the latterʼs home village, whose wealth has grown spectacularly since the present government ascended to power. Businessman Gellért Jászai, who is Konzum chairman and CEO, owns 10.43% of the shares.
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