According to an interview in HVG weekly with the Hungarian tycoon Rahimkulov, he may increase his stake in OTP Bank to 8%-10% within the next year and did not exclude the possibility of buying up to a 25% stake in the bank. He stated that he would purchase further shares if the stock prices falls to around HUF 6,100-6,400, but added that he sees a share price of HUF 10,000-12,000 as realistic in the mid-term. Rahimkulov stated that he plans to hold the stake for at least 3-5 years.
Our view:
Rahimkulov announced on September 15 that following recent stock exchange purchases, his stake in OTP Bank had reached 5.3%, and he now holds 13.9m of the bank's shares. The rapid pace at which Rahimkulov purchased his stake had a considerable influence on the run-up in OTP Bank's stock price over that time. Whilst Rahimkulov may still influence the stock price via future buying/selling, we do not expect his comments to the press on OTP's valuation to have a significant trading impact.