NEW YORK-Matav Rt., the telecommunications carrier that controls more than 60 percent of the Hungarian cellular market, plans to become a publicly traded company Nov. 13.
The equities sale, for which Merrill Lynch & Co. and Credit Suisse First Boston are joint managers, could raise more than $1 billion.
APV Rt., the Hungarian government holding company, will contribute shares representing 13 percent to 19 percent of Matav’s share capital. The offering will reduce APV’s stake in Matav to about 60 percent.
MagyarCom, a joint venture between Ameritech Corp. and Deutsche Telekom AG that now owns 25.5 percent of the company, will offer about 7 percent to 8 percent of Matav capital. MagyarCom’s stake in Matav will decline to a range of 6.5 percent to 12.5 percent.
Matav plans to sell about 188.7 million shares, or 18 percent of its share capital, to investors in the United States and other overseas countries, with an additional 31 million shares set aside to fulfill possible over-allotments if demand warrants. Matav will be listed on the New York Stock Exchange, where five of its equity shares will equal one American Depository Receipt.
Retail investors in Hungary will be able to purchase 2 percent to 6 percent of the carrier’s share capital. The Budapest Bourse, which normally closes just as Wall Street opens, is to stay open for an extra hour when the shares start trading Nov. 13 in order to allow parallel trading.
The price range for the global offering is expected to be around $3.70 to $4 per share.
