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Hungary to buy minority stake in Budapest gas supplier

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(Credit: MVM) This image file contains the company logo of Hungary's state-owned utility MVM Zrt.MVM Zrt
December 18
6:05 AM 2013

On Tuesday, Hungarian state-owned utility MVM Zrt said it will acquire a minority stake in Budapest natural gas supplier Fogaz Zrt. The said shares will be bought from German utility firm RWE AG's, according to The Wall Street Journal.

Under the terms of the acquisition deal, MVM will pay HUF41 billion ($187.4 million) for RWE's 49.8% stake in Fogaz. MVM will finance the transaction through funds from the national asset management firm MNV Zrt. MVM said it will continue to own a 50% stake in the company after the deal, the report detailed.

The state-owned firm also said it will buy 50% of Panrusgaz Zrt's shares, which imports natural gas from Russia. These shares will be acquired from Berman power firm E.ON Ruhrgas Portfolio GmbH. This deal is valued at HUF940 million, the report said.

These deals are part of the government's policy to buy stakes in companies regarded as strategically important, including utilities. According to the ruling Fidesz party, the firms were erroneously privatized in 1989, The Wall Street Journal reported.

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