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Slovakia’s Penta in talks to acquire Pápai Hús, Hungary

Chairman-CEO Jenő Varga of liquidator Vectigalis has told the business daily Világgazdaság that the company has begun negotiations with Slovak private-equity firm Penta regarding the purchase of Pápai Hús, one of Hungary’s biggest meat companies, which is currently undergoing liquidation.

Penta was the only company to submit a bid for Pápai Hús, whose published asking price is Ft 5 billion (€21.74m), Világgazdaság wrote. Varga declined to tell the newspaper how much Penta had bid for Pápai Hús, though said that the Slovak company’s offer was unacceptable. Vectigalis and Penta could, however, reach a compromise regarding the purchase price for Pápai Hús at their impending talks, he added. Meat-sector specialists consider the Ft 5 billion asking price for Pápai Hús to be too high, the newspaper wrote.

MTI reported on June 26 that Penta, Slovakia’s leading meat company, had acquired Debreceni Hús, Hungary’s second-largest meat group.

Penta would assume the second-largest share of Hungary’s meat market behind OTP Bank Chairman Sándor Csányi’s Pick Szeged if it acquires Pápai Hús as well. Pápai Hús generated turnover of around Ft 23 billion and sustained losses of Ft 100 million in 2007. (MTI-Econews)