Hungarian consortium could acquire Budapest Airport, report says

Deals

A consortium of Hungarian companies and business people want to acquire Ferenc Liszt International operator Budapest Airport, public television news channel M1 said, citing a report by news agency Bloomberg.

M1 said the consortiumʼs chances of acquiring Budapest Airport are improved by the sharp drop in passenger turnover at Ferenc Liszt International due to the coronavirus crisis.

Budapest Airport said in September that it expects passenger traffic to drop "around 90%" in the autumn and winter months and announced another round of layoffs.

Last year, the airport served 16.2 million passengers.

M1 said Budapest Airport, owned by Canadian airport management company AviAlliance (55.44%), Singaporeʼs state investment fund GIC (23.33%), and Canadian pension fund Caisse du Quebec (21.23%), was valued at around EUR 3 billion before the crisis.

Bloomberg said it learnt from two people familiar with preliminary talks on the deal that the Hungarian consortium, which includes listed oil and gas company MOL, had mandated Dániel Jellinek, the owner of property developer Indotek, to submit an offer for Budapest Airport.

"Indotek Group is conducting business negotiations with mostly market investors, primarily Hungarian and in a smaller part from the US, to purchase Budapest Airport as part of a consortium," Jellinek told Bloomberg, declining to elaborate.

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