The State Privatization and Holding Company (APV Rt) sold the entire package of 1.734m shares offered in Mol at an average price of HUF 21,592 per share at an auction on the Budapest Stock Exchange according to business daily Vilaggazdasag. The offered package was almost three times oversubscribed. APV said that the minimum accepted price was HUF 21,400 and the maximum was HUF 22,000 per share.
The 1.734m shares represented the shares left unabsorbed by Hungarian individual investors of the 1.893m shares offered by APV Rt. Settlement for the shares sold at the auction as well as settlement and allocation for the retail offering will take place on 11 December 2006. The state’s gross proceeds are expected at HUF 40.5bn from the sale of the 1.893m MOL share package.
Our view: We see the news as neutral. We view the auction of the MOL shares as successful, as the entire amount offered was subscribed. We see the 0.7% discount of the weighted average share price to the current MOL share price as reasonable.