Page 36 - bne IntelliNews magazine February 2025

36 I Central Europe bne February 2025
energy, and insurance – sectors deemed strategic within Orban’s economic agenda.
One notable subsidiary, R-Kord, is Hungary's sole company specialising
in railway development. It is part of
the Chinese-Hungarian consortium tasked with constructing the Hungarian section of the Budapest-Belgrade railway line. In tourism, the Hunguest Hotel chain is the largest operator of hotels outside the capital.
In alignment with the government’s strategic vision, Opus has become Hungary’s second-largest energy supplier after state-owned MVM, covering 40% of the country geographically. Its gas subsidiary, Opus Tigaz, serves 1.27 million consumers, while Opus Titasz provides electricity to 784,000 households. In 2023, the energy division accounted for 41% of the group's total assets and 32% of its turnover, making it the largest segment by asset value and the second- largest by revenue.
Opus has set ambitious long-term goals, projecting a compound Ebitda growth of 26% from 2023 to 2026, with a focus on consolidating its business lines and boosting profitability. Management has committed to reviewing shareholder entitlements, aiming to distribute 15% of consolidated net profit as dividends and conduct share buybacks up to HUF10bn between 2024 and 2026.
Foreign expansion
In an April interview with Index.hu, Meszaros stated that the company is prioritising efficiency and consolidation in its key sectors. However, foreign expansion remains a strategic goal, particularly in areas where Opus has
a strong domestic presence, such as infrastructure development.
The Orban government has actively encouraged Hungarian companies to invest abroad, helped by various state- supported schemes. While large players like OTP, MOL, and 4iG have the resources for international growth – the latter bolstered by bilateral agreements in the Balkans and North Africa – the strategy has recently been extended to SMEs.
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Opus also plans to expand its tourism portfolio further. Meszaros is involved in the dynamically growing Croatian tourism industry and is ploughing €100mn into new hotel developments. It is building a 185-room luxury hotel in Opatija, on the Croatian coast that will operate under the Marriott Hotels brand from early 2025. Opus also has hotels in Austria and Montenegro.
In the agriculture sector, Opus
recently acquired Rabo, Croatia’s largest apple producer. In addition, it purchased Lukavac Cement, the leading cement manufacturer in Bosnia and Herzegovina, enhancing its foothold
in the regional construction industry.
Cosy links
Meszaros has been a significant beneficiary of allegedly politically- influenced lending by MBH Bank, which was created through the three-way merger of MKB, Budapest Bank, and Takarekbank in 2023, in which the oligarch himself holds a stake. According to some economists, this politically-driven lending
poses substantial macroeconomic risks, particularly in the event of a government change.
Meszaros dismisses accusations
that his wealth stems from political connections. However, between 2010 and 2020, his company's revenues
think-tank Corruption Research Centre Budapest (CRCB).
This redistribution of resources has been criticised for fostering crony capitalism. Transparency International and other watchdogs frequently cite Hungary for declining transparency and rising corruption.
Some of these corruption allegations come close to the premier himself. Meszaros's business ventures have frequently overlapped with the interests of Orban's family. In the Felcsut area, extensive tracts of land are owned by members of either the Meszaros or Orban families.
Among these is the Hatvanpuszta estate, an opulent complex boasting
a palm house, guesthouse, library,
and underground garage. Although officially owned by Orban's father, Meszaros has leased the property
for a decade. The highly secretive construction of the estate has fuelled speculation that it functions as Orban's private retreat.
Dolomit Ltd., owned by the prime minister's father, has supplied materials from its mine for several state or EU-funded infrastructure projects, including sewerage works, road, and railway construction led by companies owned by Meszaros. Dolomit Ltd.
“Meszaros dismisses accusations that his wealth stems from political connections. However, between 2010 and 2020, his company's revenues increased by a multiple of 1,000”
increased by a multiple of 1,000. When asked how this was possible compared to Facebook’s "mere 600% growth" in the same period, Meszaros quipped: "Maybe I'm smarter than Zuckerberg.”
In 2022, Meszaros' companies won 12% of all public procurement contracts
in value, down from the peak of 16%
in 2021, according to Budapest-based
supplied over 200,000 tonnes of railway stone for the Budapest-Belgrade railway project between 2022 and 2023, allegedly at above-market prices.
Despite evidence of family enrichment, Orban maintains that he does not involve himself in business matters, and this is a standard response of his press office when queried by journalists.