Magyar Bankholding Zrt has not acquired any other shares in MKB Bank. During the now closed mandatory public bidding process, the MKB was published on the website of the Budapest Stock Exchange (BSE). The organization MKB Bank MRP (comprising employees of the Credit Corporation), which holds a 2.81% stake, refused to sell its stake at HUF 1985 per share offered by Magyar Bankholding. However, at that time, he acquired MKB shares for a fraction of that. The fact that the MRP organization did not take the opportunity indicates that the bank’s employees expect their share to be higher after the merger of MKB with Takarékbank and Budapest Bank.
These three banks set up Magyar Bankholding Zrt to prepare for the merger in which credit institution owners contributed their bank shares. In contrast, the owners of Takarékbank became 37.69 percent, MKB Banks 31.96, while Corvinus International Investment Ltd. , Which represents the Hungarian state that owns the Budapest bank, at 30.35 percent. As a result of in-kind contributions, the owners no longer directly own the individual banks’ shares after they acquired a stake in Magyar Bankholding Zrt through a capital increase realized in kind.
This was a total of 97.19 percent for MKB. Which also means Magyar Bankholding Zrt. He was obligated to submit a public tender offer for the other shares of the BSE listed credit institution in accordance with the applicable capital markets law. (Since Takarékbank and BB are not listed on the stock exchange, they are private, in their case, Magyar Bankholdig had no obligation to bid.)
Another problem is that in MKB, the takeover offer can only apply to one shareholder, the bank’s MRP organization, which holds 2.81 percent, but – as mentioned earlier – it has not exercised this option.
Regardless of this, Magyar Bankholding, as owner of more than 90 percent, can proceed to write off MKB from BSE. Even after the show was put in, in early January, we asked Magyar Bankholding about this, and we got the following answer:
“The delisting of public limited companies is decided by the general meeting of that company. We are not aware of any initiative by the shareholders in this regard.”
At the same time, we also asked if there are any plans to introduce Magyar Bankholding on the Budapest Stock Exchange. The answer is to that
“As a financial holding company, Magyar Bankholding performs the prudential supervision and group management functions of the three banking groups, in addition to planning and conducting the merger process that improves the functioning of banks. A detailed business strategy for bank finance will be developed during 2021. To operate it efficiently.”
That is, according to the current situation, MKB’s shares will remain on the exchange, although no deals have been made since its launch in June 2019, more than a year and a half ago. It is envisaged that this situation will continue until MKB, together with the other two banks, establish the mega-bank. With a future value of HUF 740 billion at the end of December last year, it could catch nearly three times the size of the OTP bank in the list of domestic credit institutions and then put it up for public subscription, in which case small investors could finally participate. In the potential increase in value.
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