EXCLUSIVE – Shareholder’s warning: Budapest Airport’s purchase may not happen
According to Hungary’s Ministry of National Economy, the government may sign the relevant contract to buy Budapest Airport this spring. However, one of the shareholders sent us a message in which they clear that may not happen.
Márton Nagy, Hungary’s minister of national economy, a new ministry created after the Christmas festivities by PM Orbán, said the government would sign the relevant contracts with the shareholders of the Budapest Airport this spring. There are three shareholders: the German AviAlliance (54.44%), a Canadian pension fund, the Canadian Pension fund Public Sector Pension Investment Board (PSP Investments, 21.23%), and Malton (Singapore) with 23.33%.
Mr Nagy added that negotiations were in a state that a contract might be signed soon. PM Orbán said on his 21 December international press conference that the airport’s purchase is a “finished issue”. He added only technicalities remained to discuss and agree on.
The European Commission approved the purchase of Hungary’s main airgate last December. The buyers will be the Hungarian state-owned Corvinus Investments and the French Vinci Airports. The majority of the shares will be in Hungarian hands, while the French will operate the airport. We wrote about that HERE.
The Hungarian government said they would include a Qatar state-owned investments fund. Furthermore, the Orbán cabinet promised to build a new terminal after the acquisition, airportal.hu wrote. Hvg.hu added that the Qatar fund would join the project as a financial or strategic investor.
Shareholder’s warning: Budapest Airport’s purchase may not happen
We received a letter lately from one of the shareholders of the Canadian pension fund writing that the purchase of the airport is not as sure as PM Orbán suggested at the last December press conference. Here is their unchanged email:
“I’m a share holder in the Canadian Pension fund Public Sector Pension Investment Board (PSP Investments) Canada. Shareholders still have not voted yet on the proposed offer from Hungarian authorities. It’s not a done deal.
Don’t listen to Hungarian authorities – of course, they will try to present a positive position. Contact the current owners for their perspective. There is still no agreement on price and value of transaction. Once it’s been agreed, then the offer must go before the shareholders for a vote.
The airport is currently operating very well. There is concern with the EU, that if the Hungarian government in any way becomes involved, it’s going to be unsuccessful; as was the case previously. This transaction is a long way from completion.”
December decision might serve as a compass
24.hu wrote that between 16 and 21 November, the three shareholders of the Budapest Airport’s owner company decided to separate their shares into three. That means they are preparing for an acquisition during which three new shareholders would replace the old ones.
AviAlliance created the following packages: 28.28%, 16.08% and 11.09%. Malton’s numbers are the following ones: 11.9%, 6.77%, 4.67%. Finally, here are the share packs of the Canadian pension fund: 10.83%, 6.16%, and 4.24%. If you add those numbers up, these are the new owner packages: 51% for the state-owned Hungarian Corvinus, 29% for the French and 20% for the Qatari investors.
24.hu added last December that it is not enough to reach an agreement with the shareholders. The Hungarian government must negotiate and agree with the airport’s creditors. The different types of loans concerning the airport reach EUR 1.5 billion.
Read also:
please make a donation here
Hot news
Unexpected medieval child burial found in Hungarian archaeological excavation
Surprisingly, Hungarians are not only going to the West to work
Hungary to have top diplomatic events this week
Despite the housing shortage, there is a sharp drop in housing construction in Budapest
Attention travellers! Major renovations underway at Budapest’s Keleti railway station – photos
Important: Expect huge traffic chaos in Budapest for Hungary’s biggest diplomatic event