The Hungarian state became owner in CER CARGO

Aim is to list CER Group on the stock exchange

The CER Group, which has almost two decades of experience in rail freight transport, will spend the 2.2 billion HUF capital investment on purchasing new locomotives in which the Széchenyi Funds and two independent market investors participate. The Fund, which is under the Ministry of Finance and is dedicated to support the listing of domestic SMEs and large corporations, creates opportunity for the CER Group shares to be listed on the Budapest stock exchange until the end of 2022.

The company, which employs 160 people, had a transport capacity of over 4 million tonnes last year, but the fleet of 11 own and 8 leased locomotives does not provide enough spare capacity. Currently, this is the primary barrier on increasing traffic, hence the investment will be spent on expanding the fleet. The development will be realized from the 2.2 billion HUF capital investment that is carried out by the Széchenyi Funds and the two independent market co-investors. As a result of the investment, the CER Group plans to achieve a significant increase in both size and profitability, and the value of its equity is expected to exceed HUF 10 billion within two years. The company, according to its plans, will list its shares until the end of 2022 on the Budapest Stock Exchange.

The signing of the contract between the Széchenyi Funds and CER CARGO took place on July 23, 2020. Press articles related to this topic are available on the following links:

magyarhirlap.hu

iho.hu

infosart.hu

mfor.hu

autopro.hu