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Talgo returns to the stock market with a 5% drop after Magyar Vagon confirmed that it was not certain about launching a takeover bid

MADRID, 12 Feb.

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Talgo returns to the stock market with a 5% drop after Magyar Vagon confirmed that it was not certain about launching a takeover bid


Talgo shares returned to the stock market with a fall of 7.64% after the Hungarian group Ganz-MaVag (Magyar Vagon) confirmed its interest in buying the railway manufacturer for 620 million euros. However, the Hungarian company has deflated market expectations regarding the execution of the operation by ensuring that it does not have enough certainty to carry it out.

A few minutes after its return to the trading floor, at 9:50 a.m., Talgo shares moderated their fall to 5.13%, until they were exchanged at a price of 4.535 euros, below the price that the Hungarian group is considering offering (5 euros) .

In a statement to the National Securities Market Commission (CNMV), Magyar Vagon explained on Friday that the main obstacle to executing the offer on Talgo is related to the company's financing subject to the change of control in order to obtain the corresponding regulatory permits.

In this regard, the CNMV has informed you that it is not permitted to subject the offer to the condition of obtaining the consent of the financing entities for the change of control.

For all these reasons, he has assured that he is not certain that the Public Acquisition Offer (OPA) that has heated up the action in recent months will be formulated, although he promises that he will inform of any subsequent decision in due course.

In this way, it has confirmed the information that pointed to a takeover bid at 5 euros per share, although it details that no agreement or decision has yet been reached in this regard, waiting to clarify the regulatory obstacles to which the company has made CNMV reference.

Around 4:00 p.m. last Thursday, February 8, the regulator decided to suspend Talgo's trading on a precautionary basis and with immediate effect after its shares on the stock market had suddenly skyrocketed by 10% due to rumors of a takeover bid.

Before the price skyrocketed, Talgo shares were worth 4.4 euros, far from the 5 euros that Magyar Vagon would pay to take over the company, so the shares reached 4.78 euros before trading was suspended. .

When this possible operation came to light in November, Talgo was trading at 3.9 euros and the same situation occurred, its shares skyrocketed to 4.4 euros, since the premium up to 5 euros reached 27.7%, and the CNMV suspended it for a few hours.

The purchase of Talgo for 5 euros per share would mean valuing 100% of the company at around 617 million euros.

The company's main shareholder is the Trilantic investment fund.

For its part, Magyar Vagon, owned by businessman András Tombor, operates the train manufacturing company DJJ, which it purchased in 2020.

If the bidding season opens, the Basque CAF would also be a good bidder for Talgo.