Hungary's capital market regulator, PSZAF, has launched an investigation into MOL's purchase of chemicals maker TVK, PSZAF spokesman Istvan Binder said. The exact subject of investigation as well as how long it will take was not announced. According to the spokesman the investigation, launched at the regulator's own initiative, does not indicate suspicion of wrongdoing.
Our view: It was rumored on the market that the price of less than € 200m, which MOL paid for 42% stake in TVK was below the prevailing market price, which was most likely to prompt the regulator to look into the deal. We see a low chance that the regulator finds the violation in the deal thus do not expect the process to have a major financial impact on MOL’s valuation. We believe the news might have slightly negative trading impact on the share price today.