Hungarian Parliament has approved yesterday two amendments to the country’s Economy Law, that form part of the package of laws that according to analysts’ opinion intend to protect the takeover of (26 600 HUF, -1,66%). While other protectionist measures intend to protect only the strategically important energy companies (so called Lex MOL), the following two protection measures were introduced for all Hungarian companies:
• There is no upper limit of own share purchases (previously 10% was set as an upper limit)
• Shareholders’ voting rights can be capped even at publicly traded companies
Our view:
We see the news as slightly negative for (38 710 HUF, -0,74%), as the amendments give further protection tools to the hand of Richter's management, which might decrease the chances of a takeover once the exchangeable bonds expire. We believe that these measures are conform with the EU legislation, and
we expect them to come into force once the President signs the bill.