The Hungarian group Ganz-MaVag (Magyar Vagon) has expressed its interest in acquiring Talgo for 620 million euros, but has emphasized that it is uncertain about the feasibility of the operation due to financing and regulatory challenges. In its statement to the National Securities Market Commission (CNMV), Magyar Vagon outlined the obstacle of securing financing contingent upon obtaining regulatory approval for the change of control. The CNMV has clarified that the offer cannot be conditioned upon the consent of financing entities. Consequently, Magyar Vagon cannot guarantee the formulation of a Public Acquisition Offer (OPA) that has been generating significant market buzz in recent months. However, they have assured stakeholders that any future decisions will be communicated in due course.
The potential takeover bid was speculated to be priced at 5 euros per share, though Magyar Vagon has emphasized that no agreement or decision has been reached at this stage. The CNMV temporarily suspended trading of Talgo shares when the stock price spiked by 10% following rumors of the takeover bid. Before the suspension, Talgo shares were valued at 4.4 euros, significantly lower than the potential 5 euros per share offer. The shares briefly reached 4.78 euros during the trading session. This is not the first time such rumors have affected Talgo’s stock price, as a similar situation occurred in November when Talgo’s shares surged from 3.9 euros to 4.4 euros before being suspended.
If the deal materializes at 5 euros per share, it would value the entire company at approximately 617 million euros. Talgo’s largest shareholder is the Trilantic investment fund. Magyar Vagon, owned by entrepreneur András Tombor, operates DJJ, a train manufacturing company acquired in 2020. In addition to Magyar Vagon, the Basque CAF could also emerge as a potential bidder for Talgo if the bidding season commences.
Following the submission of necessary explanations, the CNMV has decided to lift the suspension on Talgo’s shares, allowing trading to resume on Monday at the market opening.