Here’s the hottest story on the Hungarian stock market, the exchange rate is down

Indotek launch

In mid-October this year, it was announced that Mid Europa Partners, the majority owner of Waberer’s, had entered into an agreement with Trevelin Holding Zrt., Part of the Indotek Group, to sell 24 percent of Waberer’s shares. Mid Europa will offer a call option to Indotek for the remaining 47.99 percent stake. The transaction is subject to standard antitrust procedures and is expected to close by the end of the first quarter of 2021.

Indotek has already indicated at the time that it views the business as a long-term strategic investment, but does not intend to acquire a controlling majority in the shipping company.

The acquired option rights will be sold by Indotek Group to various professional investors, mainly with experience in the industry. Now we also know who these investors are.

György Wáberer is back on board

Yesterday, Waberer announced that

• However, the sale agreement was signed, under which Trevelin, part of the Indotek Group, will acquire a 24 percent stake in Waberer’s, as Trevelin exercised his purchase option on the 6.99 percent stake during the sale, eventually increasing its expected stake to 30.99 percent.
• In addition to Trevelin, two other large owners have also appeared in the airline: MHB Optimum and High Yield Asset Management, the first with 21% and the second with 20% in Waberer’s after a successful closure, with a public participation of 28, 01%.

The big story, however, is that High Yield owner György Wáberer has reappeared among Waberer’s owners, and his expertise, experience and network of contacts may help the company in the future.

There is still potential at Waberer’s

Concorde, which tracks Waberer’s actions, also commented on yesterday’s announcement. The company’s analyst says that as long as there is no new direction and strategy at Waberer’s, the future is uncertain, but the analyst house remains optimistic about the company’s actions. Concorde confirmed its buy recommendation and did not change the HUF 1,910 price target, which is nearly 34 percent higher than yesterday’s closing price.

According to Concorde, Waberer’s international transport segment is destructive, the insurance segment could be worth more than HUF 1,000 per share, and the regional logistics business alone is worth HUF 1,450 per share, more than the closing price. from the company yesterday, this segment could be even larger in the future. Thanks to the new ownership structure, the regional logistics business can become more valuable and generate even more cash, from which small shareholders can also benefit.

The appearance of György Waberer among the owners is also a positive development, he founded the company, knows how the company works and has extensive experience in the industry, in addition, György Waberer owns BILK, which provides storage capacity for Waberer’s, in In this context, cost synergies can already be developed. From 2021.

Concorde said that Waberer’s shares are still undervalued, the price does not reflect the company’s change of direction.

History is ugly now

The stock market is pricing in the future, a good example of this is Waberer’s, as it would be difficult to say that the company’s performance has been increasing for months. The company posted losses for 10 consecutive quarters, the airline was badly hit by the crisis and its revenue fell sharply.

Recent quarters have also demonstrated the value Waberer’s currently has: the regional logistics segment generated near-record revenue and record EBITDA in the third quarter, while freight suffers.

The exchange rate has flown

After years of declines, Waberer’s share price touched a low of HUF 562 in March this year, but has been climbing sharply since then, prices surpassed HUF 1,300 in August, the page turned in the following months. The exchange rate rose above HUF.