ADVERTISEMENT

Hungarian govʼt sells stake in Gránit Bank

Deals

The government has sold its stake in Granit Bank to the lenderʼs chairman-CEO Éva Hegedűs, Minister for National Economy Mihály Varga said at a press conference today.

The government sold its 36.5% stake in the bank to E.P.M. for an offered price of HUF 4.5 billion. Éva Hegedűs is the sole owner of E.P.M., which already held a 24.7% stake in Gránit Bank, data published by the lender in April shows.

Hegedűs has been a stakeholder in the bank since it was established by construction industry magnate Sándor Demján in 2010 to help SMEs out of the economic crisis. Demján sold his own stake to Hegedűs a year ago.

Varga announced in July that the state would sell its 36.5% stake in Gránit Bank. The government aimed to sell the stake for more than the HUF 4.3 bln it invested in the bank, he said at the time, adding that he hoped the sale would be closed by yearend.

In the first round of the sale, the government received several indicative offers but only E.P.M. submitted a binding offer. 

Varga said the other co-owners of Gránit Bank and its board of directors have accepted the governmentʼs sale to E.P.M. The National Bank of Hungary, as the regulator, has to approve the deal within 60 days.

The minister noted that the governmentʼs strategic goal is to have the majority of the banking system in domestic hands. Based on the 2015 agreement with the European Bank for Reconstruction and Development, the state does not wish to have a lasting stake in any commercial bank, he added.

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

Magyar Bankholding chairman to serve as CEO as well Appointments

Magyar Bankholding chairman to serve as CEO as well

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

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.