MOL reclaims direct ownership of 43 million of its shares – What this move could mean for NIS

The Hungarian oil company MOL has reclaimed almost 43 million of its own shares, as well as liquid financial assets worth around EUR 110 million, after the closure of the MOL New Europe Foundation.

The move comes at a time when MOL is negotiating a possible takeover of Russia’s stake in Naftna industrija Srbije.

As announced on the Budapest Stock Exchange, MOL has reacquired 42,977,996 Class A shares, as well as cash, corporate and government bonds worth around EUR 110 million.

The company has also been returned tangible assets with a book value of around EUR 823,000.

The change came after an agreement with the Hungarian Government and the decision to cease operations of the MOL New Europe Foundation in its current form, following legal amendments that provide for the abolition of certain foundations of public interest.

The public affairs performed by the foundation are being transferred to the Hungarian state, while MOL announced that it would allocate around EUR 27.6 million over the next three years for programs in the fields of education, sports, child care, cultural heritage, sustainability and support for young talents.

This news is significant for Serbia because MOL is also negotiating the purchase of a Russian stake in NIS.

Although the company did not state that the returned shares and liquid assets will be used to take over NIS, the return of a large amount of its own shares and financial assets strengthens MOL’s position and gives it more room to finance major acquisitions.

EUR 110 million alone, however, would hardly be enough to purchase a majority stake in NIS.

The overall effect of asset consolidation is more significant, as MOL can use almost 43 million of its own shares in various forms of corporate financing.

Therefore, this move can be seen as strengthening the financial position of the Hungarian company at a time when one of the most important energy transactions in the region is being decided.

At the same time, a possible takeover of the Russian stake in NIS would have direct significance for Serbia, as it would bring a change in the ownership structure of the largest domestic oil company and could be crucial for resolving the problem of US sanctions related to Russian capital.

NIS a.d. Novi Sad

MOL

MOL Nova Evropa

Naftna industrija Srbije

NIS

Budapest Stock Exchange

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