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Shareholders approve merger of Konzum, Opus

Shareholders of listed holding companies Opus Global and Konzum approved the proposal to merge Konzum into Opus at shareholdersʼ meetings on Monday, the two firms said on the website of the Budapest Stock Exchange (BÉT) on Tuesday, Hungarian news agency MTI reported.

All assets of Konzum will be transferred to Opus, which will act as legal successor. Opus will continue to operate as a public company.

Opus and Konzum announced the merger plans in October. The transaction is expected to be closed by March 31, 2019.

Both companies are controlled by billionaire investor Lőrinc Mészáros, a long-time friend and ally of Prime Minister Viktor Orbán whose wealth has soared spectacularly since the present government came to power.

In October, the management estimated the market capitalization of the future merged company will reach HUF 350-400 billion, while combined net assets will exceed HUF 320 bln. The merged companyʼs EBITDA is targeted at HUF 30 bln.

A presentation posted along with the October disclosures showed the merged companyʼs annual revenues climbing over HUF 200 bln in 2019, more than double Konzumʼs and Opusʼs combined turnover of HUF 77 bln in the past twelve months.

Last week, Konzum and Opus announced they will embark on a tour of five European cities to acquaint investors with the planned merger, their operations and their common outlook.