Hungarian oil and gas company Mol Nyrt announced on Thursday that it signed agreements on Wednesday with BNP Paribas SA on extending the deadline of an option deal on series A ordinary Mol shares held by BNP.
Under the agreement, the option rights on Mol shares held by BNP were extended by one year until December 18, 2007. Following completion of the transaction, Mol will receive an American call option on 8,957,091 series A Mol shares from BNP. Additionally, BNP will receive a European put option on the same number of Mol shares from Mol.
The exercise price for 7,552,874 Seires A shares is $35.4432 per share, while the exercise price for 1,404,217 series B shares is $110.49531 per share. The exercise prices were based on the original agreements signed on December 23, 2005 for series A shares and on April 10, 2006 for series B shares. In December 2005, Mol appointed BNP Paribas to call its option to buy 7,552,874 Mol shares at Slovintegra-Slovbena, the former shareholder in Slovnaft. On April 12, 2006, Mol sold treasury shares accounting for 7% of its registered capital to BNP Paribas with a call option to buy them back any time before December 18, 2006. BNP, in turn, has a European put option for the same number of Mol shares that it can exercise only on December 18. Mol's stock of treasury shares fell to practically zero with the sale, allowing it to call the purchase option for the 10% Mol stake held by the state. The Capital Markets Act prohibits a company from holding more than 10% of its registered capital in treasury shares.
The Hungarian state sold the last of its Mol shares, a 1.73% stake, in an offering designed for retail investors that closed on December 11, 2006.