Zsolnay could face liquidation, minority owner ready to take over

Deals

Not long after Zsolnayʼs majority owner Bachar Najari aired concerns of a “hostile takeover”, Hungarian state-owned Development Bank (MFB) has decided to launch a liquidation procedure against the porcelain maker, if the company fails to comply with the repayment scheduled on a HUF 413 million loan which matured in August, Hungarian daily Népszabadság reported today.

The local council of Pécs, which is the minority owner, already set up a company with the name Ledina Kerámia to take over the operation of the porcelain manufacturer if it is liquidated, Népszabadság reported. 

The daily said Najari had transferred the foreign rights to the Zsolnay brand to a company owned by his wife, Hungarian news agency MTI reported. Zsolnayʼs liabilities have grown to HUF 900 mln and its headcount has been cut from 220 to 150, Népszabadság added.

Najari, a Syrian-born businessman who acquired a 74.5% majority stake in the company from now minority owner Pécs local council in 2013, in statement earlier aired concerns about what he believes could be an “intended hostile takeover” supported by “representatives of the minority owner”.

After airing these concerns, the majority owner announced at a general meeting that he had initiated the squeeze-out of the companyʼs minority owner.

ADVERTISEMENT

Reforms to raise productivity would strengthen recovery - OE... Analysis

Reforms to raise productivity would strengthen recovery - OE...

Meeting called to address Pegasus spyware lacks quorum  Parliament

Meeting called to address Pegasus spyware lacks quorum 

Skanska commercial dev unit names new EVP of operations Hung... Appointments

Skanska commercial dev unit names new EVP of operations Hung...

Zsa Zsa Gabor's ashes buried in Budapest City

Zsa Zsa Gabor's ashes buried in Budapest

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.