No permission needed for Budapest Airport sale, ÁPV says

City

UK airport operator BAA Plc. would require no special permission to part with Budapest Airport Zrt if it changes hands as part of BAA's Hungarian unit BUD Holding Zrt, which is the direct owner of Budapest Airport, State Privatization and Holding (ÁPV) Zrt spokesman Péter Oravecz said on Thursday. If, however, the shares of Budapest Airport itself are sold, it would require special approval by ÁPV, Oravecz said.

As former ÁPV CEO Ákos Macher said earlier, BAA's 75% minus one share stake in Budapest Airport may not be sold unless the buyer agrees to all of the conditions that BAA agreed to when it bought the company in December 2005. When BAA purchased the stake for Ft 465 billion, it agreed to pay 0.5% of annual revenue, but at least €750,000, to the Treasury Asset Directorate (KVI). It also promised to invest €260.6 million in developments at the airport by 2011, agreeing to pay a fine if it failed to do so. It was required to produce a €75 million bank guarantee to ensure this part of the agreement.
Oravecz made the statement after Reuters reported that Spain's Ferrovial, which bought BAA earlier this year, would reach an agreement on selling the airport within ten days, citing a source close to the deal. Reuters said the buyer would be German construction company Hochtief AG, which was the runner-up in the bid for Budapest Airport.

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