The Hungarian Ganz-Mavag admits to being insolvent before its partners a year after failing its takeover bid for Talgo
The Hungarian group Ganz-Mavag lost, with the failed purchase of Talgo, its great asset to become a reference in the sector in the buoyant railway market of Eastern Europe. Since the Magyar consortium withdrew its takeover bid (takeover bid) for the Spanish manufacturer last August, after running aground in its proposal in La Moncloa for reasons of “national security”, Your business has been suffering serious difficulties to move forward..
Just over a year after failing in their attempt to take control of Talgo, those responsible for the company in which it channels its activity abroad, Ganz-Mavag International, have informed its business partners that cannot pay their outstanding debts related to the Dunakesz maintenance workshop, which belongs to the business group, through a letter revealed by the specialized media Szabad Europe in which the state of insolvency is confirmed.
According to the same document, signed by the group’s general director Csaba Törő and financial director Tamás Lóránd, the company is finalizing a reorganization plan that will allow it to “establish the long-term stability” of the aforementioned factory. In this scenario, from Budapest they open the door to a renationalization of the company controlled in equal parts by firms related to Viktor Orban’s Executive: Magyar Vagon and CATO Investments, directed by Andras Tombor – the businessman who led the offensive for Talgo.
The truth is that this company has already recorded this situation in its 2024 accounts – consulted by this means – in which it declared losses of 22 million and widened the ‘hole’ in the last three years to 71.5 million. In its latest balance sheet, the company’s equity capital was already in negative territory, reaching 30 million euros. This deficit violated the minimum required by local authorities but allowed it to continue operating thanks to the willingness of its owners to provide the necessary support to revive it. “The owners have confirmed that they wish to keep the company operational and will provide you with the financial support necessary to maintain your liquidity in 2025“they explained in the report that accompanies the accounts.
On the other hand, the balance sheet of Ganz-Mavag Europe, established between Ganz-Mavag and the Hungarian state foreign investment fund Corvinus to present the takeover bid for Talgo, reflects a practically deserted activity after the operation remained on wet paper. It is worth remembering that this firm valued the share of the Spanish manufacturer at 5 euros with a takeover bid of 619 million euros for 100% of the company that is now listed at a price of 2.61 euros per share (at the close of Monday’s session).
While Talgo finalizes its shareholder renewal
From Las Matas (Las Rozas de Madrid), the manufacturer’s current headquarters, they hope to close this long chapter of shareholder renewal with a general meeting of shareholders that they plan to hold before the end of the year in order to ratify both the new financing structure and the entry of new investors into its capital, as noted by the manufacturer in its latest semi-annual balance sheet deposited with the National Securities Market Commission (CNMV) weeks ago.
The plan contemplates the entry of the State’s investment arm, SEPI, through a capital increase of 45 million euros (7.9% of the capital) and a convertible loan of 30 million, approved by the Council of Ministers, along with another convertible loan of 75 million subscribed by Basque investors (Sidenor, Regional Executive and the BBK and Vital foundations ). The operation is also linked to the approval of a new syndicated financing structure that includes a tranche of 650 million with CESCE coverage to refinance 296 million of existing debt, another of 120 million in working capital line for three extendable years and a guarantee line of 500 million, also with CESCE coverage.
