The Hungarian company Magyar Vagon disclosed that it had been in discussions about a potential bid for Talgo, with a proposed value around 620 million euros. In a note sent to the National Securities Market Commission, the firm clarified that there is no certainty that a public offer to buy Talgo shares will occur. The consortium explained that the main hurdle is financing, which would require a change of control to secure the necessary regulatory permits. Following this communication, the regulator decided to lift the trading suspension that had been in place on Talgo, effective at the market opening on Monday.
The CNMV informed Magyar Vagon that the proposal could not hinge on obtaining financing commitments from lenders in connection with a change of control. For this reason, Magyar Vagon stated that it was not sure whether a Public Procurement Offer would be made, though it promised to report any further developments in due course.
The Hungarian group also addressed press reports that suggested a takeover at five euros per share. While no agreement has been reached, the company indicated that regulatory questions would be clarified as the process moves forward.
Suspension of contributions
Around 16:00 on Thursday, the regulator decided to suspend Talgo’s listing as a precautionary measure, following a surge in its stock price of about 10% driven by takeover rumors. Before the spike, Talgo traded at 4.4 euros. The market briefly touched 4.78 euros as the suspension began.
The same scenario had occurred the previous November when Talgo faced questions about a potential five-euro offer. At that time the stock rose to 4.4 euros, a premium that approached 27.7%, prompting a temporary halt in trading. A bid at five euros per share would value the entire company at roughly 617 million euros. The Trilantic investment fund has been noted as the company’s main shareholder.
Magyar Vagon, controlled by businessman András Tombor, runs the train manufacturing firm DJJ, a business it acquired in 2020. Basque manufacturer CAF could also emerge as a potential bidder should a formal tender process begin. After providing the necessary clarifications, the CNMV lifted Talgo’s trading suspension, allowing the market to reopen on Monday.