Lázár: Government backs Pécs council in Zsolnay issue

History

The Hungarian government “backs the efforts by the municipal council of Pécs”, which is the minority owner of porcelain maker Zsolnay Porcelánmanufaktúra, Cabinet Chief János Lázár said yesterday, according to reports. Zsolnayʼs majority owner recently aired concerns of a hostile takeover by the companyʼs minority owner.  

Cabinet Chief János Lázár speaks at his regular press conference yesterday. (Photo: MTI/Zoltán Máthé)

The Hungarian government has taken the side of the local council of Pécs in the “Zsolnay matter”, Lázár said according to reports. He added that the “apparent owner” of Zsolnay cannot count on further support from state-owned Hungarian Development Bank (MFB) or the government, Hungarian news agency MTI reported. 

He added that the government would like to create business opportunities for Zsolnay through the stateʼs renovation of a number of landmark buildings in the capital, such as the Museum of Applied Arts, MTI reported.

The staff of Zsolnay resigned from their jobs on Tuesday en masse, effective immediately, abandoning the company for the newly formed Ledina Kerámia, which was set up by the minority owner, the municipal council of Pécs. The company was set up after the MFB canceled the HUF 413 million loan provided to porcelain manufacturer Zsolnay Porcelánmanufaktúra, and said on May 31 that liquidation of the company could begin shortly if the company fails to comply with the repayment of the loan. Zsolnayʼs majority owner reportedly said it planned to sue the MFB for its decision to cancel the loan.

Bachar Najari, a Syrian-born businessman who acquired a 74.5% majority stake in the company from now minority owner Pécs local council in 2013, in a statement earlier aired concerns about what he believes could be an “intended hostile takeover” supported by “representatives of the minority owner”

Following this statement, the majority owner announced at a general meeting that he had initiated the squeeze-out of the companyʼs minority owner.

Hungary Account Deficit at EUR 561 mln in Q4 Debt

Hungary Account Deficit at EUR 561 mln in Q4

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic... Appointments

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic...

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.