Konzum moves to BÉT Prime category, discloses acquisition
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.
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