Municipal Council Buying Back Stake in Sewage Works

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The municipal council of Budapest voted yesterday to buy back a 25%-plus-one-vote stake in the Budapest Sewage Works (FCSM) for a price of HUF 16.9 billion, according to napi.hu.

The proposal was approved with a vote of 27 for and a single abstention.

The purchase price will be paid from FCSM's profit reserves, Deputy Mayor Ambrus Kiss said. The local council parted with the stake, along with management rights in FCSM, in 1997, for 25 years.

The transaction requires the approval of the Hungarian Energy and Public Utilities Regulatory Office and the Competition Office. France's Veolia group owns the minority stake.

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