Energy, Telco Tax Could Impact On Hungary's MOL
- 5 Oct 2010 1:00 AM
"Analysts expect the rumoured windfall tax on energy and telecommunication firms to be levied for more than a year, Napi Gazdasag writes. The government intends to charge these sectors a supplementary tax, similar to the bank tax, according to market rumours, although the planned duration is unknown.
Magyar Telekom would have to pay Ft 7-8 billion, and MOL Ft 10-20 billion next year, the business daily calculates.
The extra tax remaining in place for over a year could put a serious burden on these companies and impact on their share prices, Erste analyst Jozsef Miro said.
In the case of MOL, that could mean a financial obligation equal to Ft 2,000 per share.
As the Robin Hood tax obligation ends this year, another tax replaces it, Miro added.
Analysts now are attempting to ascertain whether investors had already priced in the impacts of the supplementary tax regarding the value of MOL and Magyar Telekom shares, according to Napi Gazdasag.
MOL shares have recently dropped to Ft 20,500, from a high of Ft 23,000, although the rally was fuelled by market rumours that the state would buy out Russian oil company Surgutneftegaz’s 21.2% stake in MOL.
The 12-month target price for Magyar Telekom is Ft 720 and Ft 22,000 for MOL, according to a Bloomberg market survey carried out prior to reports of the new tax."
Source: Hungary Around the Clock.
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