Hungarian group Magyar Vagon confirmed this He was in talks to propose a possible takeover bid for Talgo 620 million eurosHowever, in the note they sent to the National Securities Market Commission, they stated that “there is no certainty that a public offering will be held to purchase Talgo shares.” The Hungarian consortium explains that the main obstacle to completing the operation relates to the company’s financing, which is subject to a change of control in order to obtain the relevant regulatory permits. As a result of this communication, the regulator decided to lift the trading suspension imposed on the Spanish company since Thursday, effective from the opening of the market on Monday.
CNMV It informed the Hungarian consortium that it was not allowed to subject the proposal to the condition of obtaining the approval of the financing institutions for the change of control. Because of this reason, Magyar Vagon assured that it is not sure whether the Public Procurement Offer (OPA), which has escalated the movement in recent months, will be formulatedalthough he promised to report back on any further decisions in due course.
With this communication, The Hungarian company confirmed press reports pointing to a takeover offer of five euros per shareAlthough he details that no agreement or decision has been reached on this issue yet, he expects regulatory hurdles to be clarified.
Suspension of contributions
Around 16:00 on Thursday, Regulator decides to suspend listing Talgo Precautionary and with immediate effect after its shares on the stock market suddenly rose by 10% due to rumors of a takeover bid.. Before the price skyrocketed, Talgo shares were worth 4.4 euros; This was a far cry from the €5 Magyar Vagon would have paid to take over the company, so the shares reached €4.78 before trading was suspended.
When this possible operation was revealed in November, Talgo was listed at 3.9 euros and the same situation happened, its shares jumped to 4.4 euros as the premium up to five euros reached 27.7% and CNMV suspended it for a few hours. The acquisition of Talgo for five euros per share would value 100% of the company at approximately 617 million euros. The company’s main shareholder is the Trilantic investment fund.
For your part, Magyar Vagon, owned by businessman András Tombor, operates the train production company DJJ, which it acquired in 2020. Basque CAF could also be a good bidder for Talgo if the tender season opens. After the necessary explanations have been made, CNMV has already made the decision to withdraw the suspension of its shares, so the company will return to trading at market open on Monday.