Make Kitco Your Homepage

UPDATE 1-Hungary PM's associate to add holdings to Opus Global

Kitco News

(Adds details, context)

BUDAPEST, Feb 15 (Reuters) - Hungarian holding company Opus Global on Thursday said it would raise capital through incorporating business interests of its prominent shareholder Lorinc Meszaros, an associate of Prime Minister Viktor Orban.

Shares in Opus jumped as much as 14.9 percent to over two-month-highs as trading in the company resumed after Opus announced the batch of transactions.

Opus, a holding company which groups diverse assets such as media group Mediaworks and heating company Wamsler SE, is one of four companies on the Budapest bourse where Meszaros, the mayor of Orban's home village Felcsut, holds major direct or indirect stakes.

Opus said it will raise its share capital by 60-80 billion forints through the incorporation of stakes in six Meszaros-owned companies, including construction and energy firms.

At 1345 GMT, shares in Opus, in which Meszaros controls a 23.7 percent direct stake, were trading 10.3 percent higher at 697 forints, outperforming the wider market .

The transactions by Opus will involve issuing new shares in a closed round of offers in exchange for the incorporated assets, at the fixed price of 611 forints per share, which is equal to Wednesday's closing price.

The transactions are pending regulatory approval but Opus said it expected them to close by the end of the first half.

($1 = 249.43 forints)


(Reporting by Marton Dunai and Gergely Szakacs; Editing by Alexandra Hudson)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.