Konzum seeks to raise share capital to HUF 30 bln

Deals

The board of listed holding company Konzum has proposed an extraordinary general meeting on December 8, 2017, to give the board a mandate to raise the companyʼs registered capital until it reaches HUF 30 billion, according to the agenda of the EGM posted on the website of the Budapest Stock Exchange on Friday.

The authorization would be for five years and would allow the board to raise the companyʼs share capital at a frequency means of its choosing and at an issue price other than the face value, according to state news agency MTI.

The mandate would also authorize the board to issue convertible bonds or guarantee such bonds.

Péter Fekete, deputy CEO of Konzumʼs investment fund manager, recently said at a conference that the holding aims to expand in the banking and capital markets, energy, tourism, property, media, industrial and IT sectors in future, both organically and through acquisitions in Hungary and in Central and Eastern Europe. He added that Konzum could finance its growth with bonds or share issues, in addition to bank credit.

Konzum had share capital of HUF 521.5 million and shareholdersʼ equity of HUF 597 mln at the end of 2016, according to audited and consolidated IFRS figures.

The company has been expanding quickly this year, acquiring a dominant stake in the recently reprivatized MKB Bank, and listed companies Opus Global (formerly Opimus) and Appeninn Holding, among others.

Konzum is directly and indirectly majority owned by the investor Lőrinc Mészáros, a close ally of Prime Minister Viktor Orbán and mayor of the latterʼs home village, whose wealth has grown spectacularly since the present government ascended to power. Businessman Gellért Jászai, who is Konzum chairman and CEO, owns 10.43% of the shares.

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.