AKKO Invest decision on the acquisition of NEO Property and a capital increase

Group of Business Talking in a Meeting
Share on facebook
Share on twitter
Share on pinterest

Budapest, February 1, 2021 – At its Monday meeting, the AKKO Invest Board of Directors decided about the acquisition of NEO Property Services Zrt., one of the leading property management and property services companies of Hungary owned by the WING Group, for HUF 18.5 billion. In addition, the corporation, which entered the Premium category of the Budapest Stock Exchange in November last year, decided on the possibility of a maximum tenfold increase of the company’s share capital, and the election of a new board member.

AKKO Invest Nyrt. may purchase one of the leading property management and property services companies in Hungary, NEO Property Services Zrt. (previously STRABAG Property and Facility), listed in the Premium category of the Budapest Stock Exchange, for HUF 18.5 billion. Among other things, this was decided on by the AKKO Board of Directors under their own authority, due to the recently announced COVID-19-related restrictions (Section 9(3) of Government Decree no. 502/2020. (XI. 16.) reintroducing different provisions regarding the operation of personal and property pooling organizations in the event of an emergency), in accordance with the preliminary proposals of the extraordinary general meeting initially convened for Monday. NEO achieved a HUF 23.3 billion revenue and a HUF 1.5 billion EBITDA in 2019, and based on preliminary data, the company continued to grow in 2020 as well. NEO, which is presently owned by the WING Group, is on a dynamic growth path: its revenue has been almost doubled since 2015, and it is planning on acquisitions and introducing new services in the future, besides the continued organic growth. With this step, AKKO is realizing the largest acquisition of its history, and it could significantly increase the assets under management. The company continues to strive for maximizing shareholder value. The transaction is covered by AKKO’s own financial resources and bank loans; the closing of the deal is dependent on the availability of the bank funding, regarding which advanced negotiations are in progress.

Shopping Basket