Financial market regulator PSZÁF closed the investigation of the option contracts of Permira according to its official newspaper, Magyar Tokepiac. Permira has initiated a public bid process based on the investigated option contracts, which can prompt majority ownership for Permira in BorsodChem. The regulator asked for missing documents (list of economic activities of the bidder was not complete, and the changed relationship between Permira and VCP did not reflect in the original documents submitted), which can delay the approval of the public bid with roughly 5 days.
Our view: We believe, minority investors should view it positively that investigation of Permira’s option contracts is being closed now. We see the approval of the public bid is not so far away. After Permira files the required documents the regulator will soon approve the bid. The expected timeline of the public bid are the following:
1) When the public bid documentation is approved, the buyout process may
start the earliest 2 days and the latest 5 days later
2) Buy-out process lasts until the Friday of the 5th week (roughly 30 days)
3) Finally there are 5 days for settlement (payment)
According to our calculations, investors exercising the bid, might receive payments within 42-45 days.