The Hungarian group Magiar Vagon, owned by millionaire András Tombor, who worked more than two decades ago in the Government of Viktor Orbán, confirmed today to the National Securities Market Commission (CNMV) its interest in launching a takeover bid to buy 100% of Talgo at a price of 5 euros per share. The stock market supervisor yesterday suspended the company's trading at 4.78 euros per share. The operation, however, is at the expense of renegotiation with the banks.
The Hungarian company details in the same statement that the purchase of the iconic Spanish train manufacturer is currently conditioned by the banks that provide financial support to Talgo. These are about twenty financial entities in a pool regime that have a control clause that they can execute if the ownership of the company changes hands. Until now this relationship with Trilantic Capital has been fluid but with the Hungarian investor it is not closed.
Magiar Vagon explains that negotiations “are being initiated in relation to the financing of the company subject to a change of control in order to obtain the corresponding consents.” And he adds: “The CNMV, as it has told us, does not allow subjecting the offer to the condition of obtaining the consent of the financing entities for the change of control” of Talgo.
“Taking all of the above into account, there is no certainty that a takeover bid for Talgo will be formulated,” concludes the Hungarian company.
The CNMV plans to lift the suspension on Talgo shares next Monday, before the market opens. At the time the Hungarian investor announced his interest in Talgo, the company's shares were trading at 4.28 euros.
Tombor, the owner of Magyar Vagon, was an advisor on the national security and strategic investment council of Orban's first government, between 1998 and 2002. Hungary was then a nascent democracy and Orban was part of the European People's Party (EPP). , defending postulates very different from those advocated today by one of the prominent leaders of the European ultra-right. Tombor has also cultivated philanthropic work, since he finances the Mathias Corvinus school, an educational center that defends conservative positions in Hungary.
What is András Tombor looking for when trying to buy Talgo? Acquire, first of all, a company with mature contracts in Spain, Germany and Denmark, as well as in emerging economies such as Saudi Arabia, with the AVE to Mecca as a star project, or the aforementioned Egypt. The Spanish company also offers the Hungarian businessman to be part of the business of liberalizing the national railway market, since Talgo is the producer of half of the high-speed convoys currently circulating in Spain.
Talgo is also attractive for three other reasons: on the one hand, its 350 train model reaches a speed of 350 km/h, higher than its competitors. On the other hand, the company's own variable gauge technology, so that trains can go from one size of track to another, is essential for cross-border routes, such as Barcelona-Paris or Madrid-Lisbon. Finally, Talgo has a green hydrogen train project underway with Repsol.
