Equity
Hungary Démász receives buyout bid from France's EDF
EDF plans to buy all ordinary shares it does not hold and rationalise its business operations in Hungary, as well as in Central Europe.
EDF has already filed the offer for approval with the Hungarian Financial Supervisory Authority and BSE. The Supervision will make a decision on the approval of the Offer within a period of 15 days, in accordance with the Capital Markets Act.
We believe the HUF 20,000 bid reflects the stock's fair value and so EDF can expect to boost its holding substantially in Hungary's most liquid electricity provider.
The timing of the offer, however, is questionable, since a similar bid could have been made earlier at a more favourable price level.
The market can now start to prepare for the withdrawal of another BUX component, which has been a favourite of conservative investors. The delisting of Démász can pave the way for smaller dividend stocks on the Budapest bourse. One of the winners of an inevitable BUX basket reshuffling could be another electricity distributor, Émász, which was included in the BUX basket this April.
EDF has already filed the offer for approval with the Hungarian Financial Supervisory Authority and BSE. The Supervision will make a decision on the approval of the Offer within a period of 15 days, in accordance with the Capital Markets Act.
We believe the HUF 20,000 bid reflects the stock's fair value and so EDF can expect to boost its holding substantially in Hungary's most liquid electricity provider.
The timing of the offer, however, is questionable, since a similar bid could have been made earlier at a more favourable price level.
The market can now start to prepare for the withdrawal of another BUX component, which has been a favourite of conservative investors. The delisting of Démász can pave the way for smaller dividend stocks on the Budapest bourse. One of the winners of an inevitable BUX basket reshuffling could be another electricity distributor, Émász, which was included in the BUX basket this April.
