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MOL purchases a 19.61% long term investment in TVK, the leading Hungarian petrochemicals company
In accordance with the regulations of the Hungarian Securities Act and the relevant Budapest Stock Exchange rules, MOL, the leading Hungarian oil and gas company, announced today that it has purchased a 19.61 per cent strategic investment in TVK Rt., the leading petrochemicals company in Hungary. MOL has purchased this shareholding on the Budapest Stock Exchange as well as through OTC trades and has paid a total of HUF 16.6 bn for the shareholding, at an average price of HUF 3,412 per share.
MOL has acquired this strategic investment in TVK to protect its commercial interests. TVK is a major customer of MOL`s Duna and Tisza refineries which supply TVK with most of its feedstock requirements, equivalent to around 1 million tonnes of naptha per annum.
Following the acquisition of this shareholding, MOL is now one of the largest shareholders in TVK and intends to seek representation in the management and governing bodies of TVK.
MOL has no current intention to make an offer for the remaining shares in TVK.
Commenting on the acquisition of this shareholding, Mr. János Csák, Chairman of the Board of Directors of MOL, said today:
"We are currently reviewing all our strategic options and we believe that this investment in TVK complements the other opportunities we are considering. MOL sees this investment in TVK as a good opportunity to develop a strong refinery and chemical alliance with TVK, which we believe will be in the interest of MOL shareholders. MOL intends to seek representation on the Board of TVK and participation in the management of the company to protect its commercial interests in TVK."
TVK is the leading petrochemicals producer in Hungary, and also has strong regional sales capabilities. MOL is the major supplier of TVK, selling around 1 million tonnes of chemical feedstock to the Tiszaújváros based company, whose plant is adjacent to MOL`s Tisza refinery. In 1998, MOL sold raw materials with a value of HUF 28 bn to TVK while it purchased materials from TVK with a value of approximately HUF 10 bn. TVK reported a net income of HUF 11.8 bn on net sales of HUF 86.0 bn in 1998.