Wednesday , June 7 2023

In the first half of next year, Konzum-Opus can leave the international capital market.


The Konzum-Opus group, which is preparing to merge in nine months, has expanded into an important asset. With close-out allocations and acquisitions, Opus Global is close to 17 and Konzum Plc's equity capital has grown 14 times. Konzum's Vice-President Péter Fekete told Világgazdaság.

The closed capital increase series on Friday estimated that Opus's stake increased to over $ 250 billion. What do your company's assets mean now? And when can you tell the exact impact of the deal on equity?

The Opus Group is mainly in manufacturing. Along with increased capital, significant energy footing was built through Mátrai Power Plant Ltd., which has an interest in the agriculture and food sector and owns one of the largest isoculose plants in the region, KALL Ingredients Ltd., Csabatáj Zrt Starting with wheat starch, the major shareholder of Viresol early next year, and at the industrial production site, Euro Generál Építő és Szolgáltató Zrt, owner of the Wamsler stove and fireplace plant, will be the major shareholder of Mészáros Építőipari Holding, R-Kord Kft. Mészáros és Mészáros Kft. It is owned. More than $ 25 billion in capital is a conservative estimate and can be evident after the December balance sheet. It is essential that our biggest companies achieve even greater growth. The two construction companies are currently receiving orders of over 300 billion HUF and expect further expansion in the near future. Our two food companies, KALL and Viresol, are facing significant recovery and have an EBITDA potential of approximately $ 6 billion assuming total utilization. We believe that we have acquired Mathra Power Station in difficult financial situations and will soon see management's results on our financial figures.

Why did you need to revise your capital two times over a period of time?

Transactions were announced in February this year, and timetables were formed by a number of factors affecting construction, valuation of assets valuation, and so on. Just a few examples: For example, at the time of the announcement, we were planning to acquire 30% ownership of the isoculide plant. During the negotiations, the founder wants to sell the entire company. The disagreement with the EPH Group on the restructuring of the Mata power plant has been completed, and the Czech partner will sell the stake in the second phase and leave the company by June next year. Last year, the German company lost almost 9 billion dollars, and the company did not recover. In February, however, shareholders were worth the wait because the capital stock was expected to increase by 110 to 12 billion compared to Opus shares. Opus's share was only about twice that of the 200 billion forint.

Péter Fekete, CEO of Konzum Plc
Photo: Móricz-Sabján Simon

Why did you decide to sell your media portfolio?

This move reflects additional strategic direction. As an investment holding company, we are looking for an industry that is consistently strategically important and has good growth prospects. The current portfolio works well, but media companies do not have the same potential. Group-wide EBITDA could decline from $ 4-5 billion to $ 1-15 billion in the medium term due to a negative impact on print media market pressures. In addition to a number of factors, we have decided to sell our portfolio and the proceeds will go to purchase 55% of Status Power Invest Ltd., which owns the Mátra power plant. To our shareholders, it is important to sell the media business to the book value, earn $ 3 billion in profits, and outweigh the significant debt burden.

How does Opus profitability and equity goals change with loss of media portfolio?

Mészáros Építőipari Holding's income generating capacity is a large part of this revenue. The company has two construction companies, R-Kord Kft, Mészáros and Mészáros Kft. It is owned. PricewaterhouseCoopers also estimates that this is about 60 billion barrels. That figure is well above our February forecast, based on the contract portfolio that was significantly expanded in 2018. This $ 60 billion forint value is conservative in some respects, as it only evaluates existing contract portfolios and does not take into account future projections. Thanks to its current portfolio, Opus will be able to produce at least 20-2.5 billion HUF with an EBITDA of 2019 and HUF 7.9 billion last year. I think it is not unreasonable to reach an EBITDA of 450 billion within two to three years.

Last summer, the consortium closed its capital gains by receivables from the hotel portfolio owned by Tamás Leisztinger and the Balatontourist group. How do transactions affect your business?

Konzum is now a very strong tourism portfolio with Hunguest Hotel Zrt and owns 18 domestic hotels and 5 foreign hotels, and direct integration includes Balatontourist, the largest lake camping grounds. Through Appeninn Property Management Holding Plc, we have a strong interest in real estate investment as well as in the capital, capital and insurance markets. Today, Konzum is no longer a company of last year. Its equity is estimated to exceed 68 billion forint, with an EBITDA of about 6-7 billion. As mentioned earlier, the Konzum portfolio can target tens of billions of EBITDA over the next two to three years.

With the approval of the General Assembly, the merger of Konzum and Opus may begin. How does the process look?

With the merger of Konzum, with the merger of 350 to 400 billion forints, Opus is expected to grow to more than 32 billion powerful companies with capital. The general approval of Dec. 3 has begun to elaborate on the details of the merger, and the results will be provided to shareholders at the next extraordinary general meeting next spring. Once approved, you can submit a cancellation request for Konzum and start a new Opus share.

How does conversion rate change?

At the current stage of the transaction, we can not talk about this issue. To determine changes in equity, you need to consider some factors, capitalization, relative ratios, and book value of your company. Our goal is to include an international investment bank that is independent of exchange rate determination. But first you have to close your business year for this company. We definitely want a fair deal with our shareholders. We can share the details of the exchange rate in early February or early March and submit it to the General Assembly.

When are you planning an international market?

We are in contact with several international investment service providers and are planning to appear on the international capital markets in the first half of 2019.

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