Hungarian group Magyar Vagon confirms it is planning a takeover deal for Talgo, but says it is not certain about it.

Hungarian group Magyar Vagon confirms it is planning a takeover deal for Talgo, but says it is not certain about it.E.P.

Hungarian group Ganz-MaVag (Magyar carriage) confirmed the interest you have in purchasing Talgo for 620 million eurosalthough this reduced market expectations regarding the execution of the transaction, not having enough confidence to do so.

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In a statement from the National Securities Market Commission (CNMV), Magyar Wagon explains that the main obstacle is related to company financing subject to a change of control in order to obtain appropriate regulatory approvals.

In this regard, the CNMV has informed you that it is not permissible to condition the offer on the condition of obtaining the consent of the financiers to the change of control.

For all these reasons, he argues that he is not confident that the public procurement proposal (OPA), which has fueled action in recent months, will be formulated, although promises that he will inform you of any subsequent decision in my time.

Takeover offer at €5 per share

This confirms the information that They were targeting a takeover bid at €5 per share.although it clarifies that no agreement or decision in this regard has yet been reached pending the clarification of the regulatory obstacles referred to by the CNMV.

Around 4pm on Thursday, the regulator decided to suspend Talgo’s trading as a precautionary measure with immediate effect after its stock market shares suddenly soared 10% on rumors of a takeover bid.

Before the price went up Talgo shares cost 4.4 euros.This is a far cry from the 5 euros that Magyar Vagon would have paid to take over the company, which is why the shares reached 4.78 euros before trading was suspended.

When this possible operation became known in November, Talgo was trading at 3.9 euros and the same situation occurred: its shares soared to 4.4 euros as the premium to 5 euros reached 27.7% and the CNMV suspended it for few hours.

617 million

Buying Talgo at 5 euros per share would mean values ​​100% of the company at approximately 617 million euros.. The company’s main shareholder is the Trilantic investment fund.

For its part, Magyar Vagon, owned by businessman András Tombor, operates the DJJ train manufacturing company, which it bought in 2020. If the bidding season opens, Basque CAF will also be a good contender for Talgo.

After providing due explanations, CNMV has already decided to lift the suspension of its shares, so the company will return to trading on Monday at the market open.