MOL takes a strategic role in the renewal of BME

MOL Plc. hereby notifies the market of the following:

The MOL Group takes part in the maintenance of the Budapest University of Technology and Economics as a strategic investor, as part of which the country's most prestigious technical higher education institution is moving to a new, private university operating model. With HUF 50 billion (USD 140 million) investment, MOL will strengthen its R&D&I capacities and play a leading role in engineering education in Hungary.

MOL signed a sale and purchase agreement today with the Hungarian State to acquire 100% of the ordinary shares of BME Fenntartó Zrt. (“BME Zrt.”) for HUF 50 billion (USD 140 million), payable in annual instalments over the next 10 years.

The transaction aims to provide a long-term sustainable and competitive organisational and financing structure for Hungarian engineering and IT education and research and development, and to strengthen MOL's role in the development of the Hungarian innovation ecosystem. Through the transaction, MOL will build a knowledge base that will facilitate both the expansion of its R&D and innovation activities and their direct integration into its business operation.

The Budapest University of Technology and Economics (“BME”) is one of the most prestigious and respected universities in Hungary. BME is a regional leader in transport (mobility) and automotive research, chemical research and education, engineering and energy research such as hydrogen and nuclear energy, circular economy, recycling, digitalisation and IT research. 

BME has over 20,000 students studying at its eight faculties, including a significant number of foreign students. The institution attracts over 12,000 new applicants annually and is a key player in European research programs: BME has so far received 54 applications in the Horizon Europe framework program launched in 2021, totaling over 17 million euros in funding, making it the leader in Hungary in terms of both participation and the amount of funding received.

"Part of MOL's long-term strategy is to strengthen cooperation with higher education, especially in the field of engineering education. Cooperation with BME enables us to train engineers with state-of-the-art knowledge and to carry out real industrial research. This step is not only crucial for the future of MOL, but it can also open new perspectives for other industrial players," said Zsolt Hernádi, CEO of MOL Group.

As part of the new maintenance model, the parties sought to create a predictable and sustainable financial framework, which was established in a 25-year framework agreement and a 6-year financing agreement between BME Zrt. and the Hungarian State. This will be further strengthened by revenues from industrial cooperation, grant funding and student tuition fees. On this basis, the free cash flow of BME Zrt. is expected to be positive in the coming years. With its decades of experience in responsible management, implementing improvements and increasing efficiency, MOL will strive to provide what is needed for the renewal of BME.

In addition, the Hungarian State has agreed to a repurchase commitment with regards to the shares of BME Zrt. held by MOL, which can be exercised in the event of a deterioration of the regulatory and operational environment. The Hungarian State and BME will have veto rights over certain issues, in particular the sale of shares in BME Zrt. and the autonomy of BME.

After the closing of the transaction, BME Zrt. is expected to be fully consolidated.