Konzum-Opus exchange ratio set at 2:1

Telco

The exchange ratio for the stock-for-stock merger of listed holding company Konzum with peer Opus Global has been set at two shares to one, documents detailing the planned merger released after the market closed on Thursday show, state news agency MTI reported.

The exchange ratio was set based on IFRS consolidated shareholdersʼ equity of more than HUF 73.8 billion for Konzum and HUF 280.4 bln for Opus on December 31, 2018. However, when determining shareholdersʼ equity per share, the total was reduced for non-controlling interests and HUF 6.5 bln in comprehensive income booked by Konzum on Opus shares it owns. Thus shareholdersʼ equity per share was set at HUF 154 for Konzum and HUF 314.1 for Opus.

Shareholders of the companies will vote on the merger plan at extraordinary general meetings called for April 8. If the plan is approved, Konzum shares will last trade on June 24, settlement will take place on June 26, and shares of the successor company, Opus, will trade from July 1.

Shareholdersʼ equity of the successor company will stand at HUF 347 bln, calculating with balance sheet totals on December 31, 2018. Its market capitalization will reach HUF 332 bln, calculating with Konzum and Opus closing share prices on March 6, making it the fifth biggest company on the Budapest Stock Exchange.

Trade of shares in both companies was suspended on March 7 pending the announcement of the merger details. The merger was initially announced in October 2018. Both companies are controlled by billionaire investor Lőrinc Mészáros, a close ally of Prime Minister Viktor Orbán whose wealth has soared since the present government came to power.

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