Ganz Mavag, the Hungarian consortium formed by state and private capital, today presented the prospectus of the takeover bid for 100% of Talgo at five euros per share with a maximum cost of €620 million. Talgo is currently trading at €4.3 per share. The Magyar investors remain committed to strengthening Talgo’s industrial capacity despite resistance from the Spanish government, which is reluctant to see the train manufacturer pass into the orbit of businessmen linked to the Hungarian president, Viktor Orbán.
The takeover bid, backed by bank loans, needs the approval of the Spanish Council of Ministers as it is a strategic asset to be acquired by a foreign group, even if it is from the EU. In addition, the takeover bid needs the approval of market regulators in all the countries where Talgo operates, including Egypt, Saudi Arabia, Kosovo and Serbia.
A waiting period is now open at the National Securities Market Commission (CNMV) until the bid obtains all approvals. The managers of Magyar Vagon, led by András Tombor, intend to hold meetings with the Spanish authorities to explain their industrial project.
The objective is to convince the Presidency of the Government and the Ministries of Transport and Industry that its project contemplates the industrial growth of Talgo, whose production capacity is currently limited to execute the current portfolio of €4.2 billion and to address new growth opportunities.
