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State will not fund Rába purchase from budget

Telco

No budget funding will be used to purchase the shares of Hungarian vehicle and vehicle parts maker Rába, Hungarian National Asset Management Company (MNV) portfolio director Csaba Polacsek said at a press conference on Tuesday.

MNV has the resources necessary to acquire the shares of Rába in a public purchase offer, Polacsek said.

MNV on Monday announced a public purchase offer for Rába at a price of HUF 815 per share, well over the HUF 669 180-day average share price.

Polacsek said it would cost about HUF 11 billion to buy all of Rába’s shares, but HUF 10.1 billion excluding treasury shares. The state’s Pension Reform and Debt Reduction Fund has a 15.47% stake in Rába, worth about HUF 1.7 billion, he added.

The state made the public purchase offer for Rába after reaching an agreement to buy a 10.85% stake from the company’s biggest shareholder, Malaysia’s DRB, Polacsek said. Including the 7.68% of shares in Rába’s treasury, the state will have more than 33% of the company when the purchase offer starts, he added.

The state does not plan any significant changes to Rába’s activities at present, he said.

National Development Ministry state secretary János Fónagy said it is Rába’s strategic goal to increase vehicle production capacity. Economy of scale cannot be achieved in the bus manufacturing segment in Hungary, but Rába could excel in the special vehicles segment, such as in the manufacture of fire engines.

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