AKKO Invest planning further acquisitions after buying NEO Property
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AKKO Invest has successfully completed the acquisition of NEO Property Services Zrt., and is examining the possibility of further acquisitions following the closing of this transaction, with the aim of becoming a major asset manager in the Hungarian capital market, according to a press release sent to the Budapest Business Journal.
The HUF 18.5 billion acquisition was financed by AKKO‘s own resources and a 15-year loan of HUF 12 billion provided by OTP Bank Nyrt., with the company acquiring NEO Property Services Zrt. from WING Group.
NEO achieved a HUF 23.3 billion revenue and a HUF 1.5 bln EBITDA in 2019, and based on preliminary data, the company continued to grow in 2020 as well.
Regarding the acquisition, Zoltán Prutkay, president of AKKO Invest explained that now they had completed the largest acquisition in the history of AKKO, and this had been a significant step for the company towards the realization of its growth plans, which aim to make them a major asset manager company of the Hungarian capital market. AKKO Invest supports the management and the growth strategy of NEO, the realization of which is reinforced by AKKO’s stable capital market and ownership background. Zoltán Prutkay talked about that AKKO had further significant growth plans, and so they were looking into new potential acquisitions as well, for the financing of which AKKO Invest has decided about the possibility of a maximum tenfold increase of its share capital.
Noah Steinberg, chairman and CEO of WING Zrt. said, "We are proud that over the past years we have managed to further strengthen the leading position of Neo Property Services Zrt. in the property-related services market, and that we could sell a dynamically growing company to AKKO Invest. This transaction is in line with our company's growth strategy over recent years, which aims to maintain our leading role in the Hungarian real estate market and to become a significant market player in the international real estate market. Therefore, we focus our operation on regional expansion as well as our Hungarian property development and investment activities. AKKO Invest, as a stock exchange company, can provide new possibilities for NEO Property Services."
"WING is active in all real estate market segments, whether it is residential properties, office buildings, industrial properties, shopping centers or hotels in Hungary, or, via its subsidiary Echo Investment, offices and residential projects in Poland," he added.
László Vágó, CEO of NEO Property Services Zrt., noted, "Having a new owner, our aim continues to be the professional operation supported by continuous innovations, stable growth that can be sustained in the long-term, and preserving our leading position in the property management market. The basis for these objectives is the comprehensive service provided in accordance with the needs of our clients in the fields of integrated facility management (FM), property management (PM) and fit-out construction projects."
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