Report: MHB-BANK AG buys MKB’s syndicated loan
MHB-BANK AG purchased MKB Bank’s syndicated loan of €128 million, which it provided for the development of the Arena Plaza shopping center in 2007, Hungarian business daily Világgazdaság reported today.
In April, KPMG was commissioned by the National Bank of Hungary (MNB) to find buyers for MKB’s share in the syndicated loan, the paper said. MNB currently exercises ownership rights over MKB.
The paper reported that of the 78 parties initially interested, Lone Star Real Estate Fund was the only one to make a binding offer, in which it designated MHB-BANK as the buyer. The paper adds that on behalf of the central bank, deputy-governor Márton Nagy approved the transaction on October 21.
MKB originally provided €720 mln for the project, and by the end of last year, repayments had reduced the loan to €177 mln, but auditors of MKB last spring estimated the loanʼs market value to be just €129 mln, Hungarian news agency MTI reported.
The Hungarian state bought MKB from BayernLB in 2014 and the central bank is planning to sell at least 50% of its shares plus one vote, MTI said, adding that the bankʼs majority share packet is expected to be offered for sale in the first half of 2016 at the latest.
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.