Mortgage bank FHB up for sale again
Wednesday, October 25, 2006, 11:43
The Hungarian government has re-opened the tender for its 54.1% package in Land Credit and Mortgage Bank (FHB) Zrt. The State Privatization and Holding (ÁPV) Zrt has announced that it called a tender for an advisor on FHB's planned sell-off and invited five bids.
According to business daily Napi Gazdaság, the sale, which could bring €222 million to state coffers at current market prices, might take place as early as December.
“The privatisation and possible takeover of FHB Bank could create a speculation about delisting of the bank, which could push the price higher in the short term," Jiri Stanik of Wood & Co. has commented on Wednesday. “On the other hand, loss of state majority will result in more expensive cost of funding and pressure on profitability," he added. Marta Czajkowska of KBC Securities also said the news was “potentially positive" for the bank, “as it could lead to the speculation that following the successful privatisation a buyout offer for minorities might be called." “We consider FHB Bank as overvalued, however we could expect the potential buyer to offer a premium given the strong interest in the CEE banking assets," the analyst added. (Portfolio.hu)