October 18, 2018 / 9:42 AM / a year ago

Hungary's Konzum and Opus Global announce plan to merge

BUDAPEST, Oct 18 (Reuters) - Hungarian holding companies Konzum and Opus Global announced on Thursday a plan to merge, creating a combined entity with a market capitalisation of about 350 billion to 400 billion forints ($1.25 billion to $1.43 billion).

That would put the merged company’s market capitalisation on a par with that of Magyar Telekom, the fourth-biggest blue chip on the Budapest Stock Exchange, whose current market capitalisation is worth 412 billion forints.

The businesses, linked to Lorinc Meszaros, an associate of Prime Minister Viktor Orban, said the joint company could produce earnings before interest, tax, depreciation and amortisation (EBITDA) of about 30 billion forints next year.

“The implementation of the merger could provide room to realise the significant, regional growth plans of the group,” Konzum said in a stock exchange filing.

The companies aim to close the merger by March 31, 2019. ($1 = 279.37 forints) (Reporting by Gergely Szakacs)

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