MVM finalizes purchase of RWE stake in Főgáz

Deals

The state-owned Hungarian Electricity Works (MVM) today reported the transfer of HUF 41 billion to purchase a minority stake in gas distributor Főgáz from Germany-based utility company RWE. With the transfer and subsequent regulatory approval, the acquisition of the 49.83% stake has been closed, MVM representatives said.

MVM signed the purchase agreement for the stake last December.

MVM financed the acquisition of the stake with a loan from the state assets manager/MVM majority shareholder MNV. The loan will be refinanced with a capital raise by the owner(s) in the course of 2014.

MVM will acquire the remainder of the company’s shares from the local council of Budapest by July 31, per a government resolution published in March. Talks on the acquisition of the local council stake are starting now that the acquisition of RWE’s stake has been completed, MVM also reported.

The move is acknowledged as the latest in the central government’s plans to play a more significant part in Hungary’s utility sector.

Főgáz has 820,000 retail and corporate clients.

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