Deutsche Balaton AG announced on Friday it had submitted a public purchase offer for all outstanding shares of asset management company Hungagent Rt at a price of Ft 1,495 per share to the State Financial Supervisory Authority (PSzÁF).
Deutsche Balaton is offering a big premium over Hungagent's 180-day turnover-weighted average share price of Ft 1,100, the minimum price for a buyout required under Hungary's Capital Markets Act. Market insiders say Deutsche Balaton will try to achieve a stake exceeding 90% in Hungagent in the buyout, after which it can squeeze out small shareholders, as allowed under the Capital Markets Act. They note that Deutsche Balaton announced in January it had reduced its stake in Hungagent from 90.13 to 89.76%.
Hungagent had consolidated total assets of Ft 894 million at the end of 2005. It closed the year with pre-tax profits of Ft 181 million calculated according to International Financial Reporting Standards.