Energy
Hungary Mol exits MET Group
Negotiations about the sale of MET started about a year ago, as a result of which CEO Benjamin Lakatos and MET Group managers are now buying out the owners.
“MET Group will be owned by MET Capital Partners AG, a newly registered investment platform of MET Group CEO, Benjamin Lakatos. MET Group managers will participate via a share program through MET ManCo AG for up to 20%. The foregoing shareholders have divested all their holdings in the company," MET Group said in a press release on Wednesday. Management will become 100% owners with the help of a loan provided by ING Bank.
The transaction will be carried out in two phases. In the first one, Lakatos and members of MET’s management will become owners. MET ManCo has already held a 10% stake in the company which now grow to 20%, and it will be joined by MET Capital Partners AG as majority owner. This company was established by Lakatos’s holding company, Deneb Algedi Invest AG which is also registered in Switzerland. In step two, MET will aim to attract “significant growth equity".
The plan is to turn the static ownership structure into a more dynamic one, which could bring about several changes. According to the model that is mostly used in the sector, a part of the annual bonuses could be distributed in the form of shares. Another change could be if attractive acquisition opportunities arise, in which case larger investors and target funds could also be involved. However, they will obviously want to join only if they see a certain exit opportunity, as well.
MET also said that in the new management-owned structure, the circle of involved management members will be expanded to 50-70 managers.
MET was formerly owned by MOL Group, WISD Holding Ltd. and MET ManCo AG. MET Capital Partners AG has bought the ownership of MOL and WISD Holding Ltd., supported by ING Bank. MET Group managers will participate via a share program through MET ManCo AG for up to 20%. The first management buy-in happened in 2012 when MET managers - via MET ManCo AG - acquired 10% of the shares.
This is how István Garancsi, Prime Minister Viktor Orbán’s friend and owner of his second-favourite football club Videoton and co-owner of Market Zrt. with an EUR 80 million fortune, György Nagy, a regular business partner of OTP Bank Chairman-CEO Sándor Csányi with whom he is co-owner of several companies, and Mol Group, the founder of MET.
The reasons behind the transaction can only be guessed, according to local news portal index.hu that noted the gas trading company has been steadily making profit. MET management claims they did not want to participate in the sector’s consolidation in the following years as minority owners and financial investors, for the related manoeuvres will require massive capital increases. It cannot be excluded either that negative press concerning MET and remarks made by MPs in Parliament were also irksome for shareholders.“MET Group will be owned by MET Capital Partners AG, a newly registered investment platform of MET Group CEO, Benjamin Lakatos. MET Group managers will participate via a share program through MET ManCo AG for up to 20%. The foregoing shareholders have divested all their holdings in the company," MET Group said in a press release on Wednesday. Management will become 100% owners with the help of a loan provided by ING Bank.
The transaction will be carried out in two phases. In the first one, Lakatos and members of MET’s management will become owners. MET ManCo has already held a 10% stake in the company which now grow to 20%, and it will be joined by MET Capital Partners AG as majority owner. This company was established by Lakatos’s holding company, Deneb Algedi Invest AG which is also registered in Switzerland. In step two, MET will aim to attract “significant growth equity".
The plan is to turn the static ownership structure into a more dynamic one, which could bring about several changes. According to the model that is mostly used in the sector, a part of the annual bonuses could be distributed in the form of shares. Another change could be if attractive acquisition opportunities arise, in which case larger investors and target funds could also be involved. However, they will obviously want to join only if they see a certain exit opportunity, as well.
MET also said that in the new management-owned structure, the circle of involved management members will be expanded to 50-70 managers.
MET was formerly owned by MOL Group, WISD Holding Ltd. and MET ManCo AG. MET Capital Partners AG has bought the ownership of MOL and WISD Holding Ltd., supported by ING Bank. MET Group managers will participate via a share program through MET ManCo AG for up to 20%. The first management buy-in happened in 2012 when MET managers - via MET ManCo AG - acquired 10% of the shares.
