UPDATE - State makes public takeover bid for Rába

Deals

The Hungarian National Asset Management Company (MNV) on Monday made a public takeover bid for vehicle and vehicle parts maker Rába at a price of HUF 815 per share, Rába said.

The state of Hungary holds 16.15% of Raba at present through different funds, companies and organisations.

The offer must still be approved by financial market regulator PSZÁF.

Trade in shares of Rába has been suspended since Wednesday. The share last traded at HUF 621. The 180-day average price for the share was HUF 669, the latest data posted on the bourse’s website shows.

The National Development Ministry and MNV said in a statement after the announcement of the purchase offer that the government wants to strengthen the state’s role in the automotive industry. A majority state-owned stake in the company would ensure that national economic and geopolitical considerations are taken into account in the implementation of a long-term, forward-looking business development strategy for Rába, they added.

MNV submitted the purchase offer to PSZÁF on November 7. The watchdog has ten days to take a decision on the offer.

The offer price is level with the highest price paid for Rába shares by state-owned MFB Invest in the 180 days before the purchase offer was submitted to PSZÁF. MFB Invest holds 0.68% of Raba shares.

Acquiring all of the company’s shares would cost the state HUF 9.2bn.

A combined 15.47% of Rába shares are held by the state’s Pension Reform and Debt Reduction Fund, into which assets of former private pension fund members were transferred in the summer. DRB-Hicom Berhad, registered in Malaysia, holds 10.85% of the company’s shares. Both the fund and DRB Hicom Berhad agreed early in November to sell their shares to the state.

Two-thirds of Rába shares are in free float and 7.68% are treasury shares.

MNV said it planned no changes to Rába’s management, employees or subsidiaries.

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