Magyar Vagon asks the Government to authorize its takeover bid of 619 million euros for Talgo

The authorization of the Government is an essential requirement to continue with the operation, in application of the anti-takeover shield that it approved due to Covid-19, as well as by Law 19/2003 on the legal regime of capital movements and economic transactions. with the outside.

For now, The Executive has been reluctant to give the ‘green light’ to the takeover of a strategic Spanish company by Hungarian investors, alleging possible Russian and far-right links.

Magyar Vagon has also requested the respective competition law authorizations from the European Commission and from the competition authorities of Albania, Kosovo, Montenegro, Serbia, Egypt and Saudi Arabia, as well as the Danish Business Authority.

The Hungarians thus comply with the maximum period of 30 days marked from the formal presentation to the CNMV of the Public Acquisition Offer (OPA), which ended next Sunday, April 7.

Magyar Vagon defended its operation by alleging that the price of 5 euros per share offered represented a premium of 41.4% compared to the average price of Talgo during the six months prior to the presentation of the offer.

TALGO COLLABORATION

Magyar Vagon has been in confidential conversations since last December with the company’s main shareholder, Trilantic (with 40% of the capital), and with Talgo itself, which gave its consent to share information with the buyer.

In fact, both parties agreed on a clause that will oblige Talgo to pay 3 million euros to Magyar Vagon if the offer is authorized but ultimately does not succeed due to the presentation of a competing offer, as compensation for the costs and expenses incurred in the preparation of the takeover bid.

Furthermore, Talgo’s board of directors has already declared that it is a friendly takeover bid and that it will collaborate with the Hungarians for its success, including to seek financing if any entity resolves its debts due to the change of control.

With all this, Pegasus Transportation International (Trilantic’s industrial company) confirmed that its intention is to accept the offer with its entire participation, so the Hungarians would already ensure 40% acceptance thanks to their close collaboration with the company. and its main shareholders.