State to buy Hungary-Slovak gas transit company from state-owned shareholder

Initiatives

The state will take direct ownership in Magyar Gáz Tranzit, a Hungarian company responsible for the Slovak-Hungarian gas interconnector, currently owned by two state-owned companies by the end of September, a government resolution taken on Thursday and published in the Hungarian official gazette Magyar Közlöny shows.

Hungarian electricity works and energy group MVM and MFB Invest, a unit of the National Development Bank (MFB) each hold 49.98% of Magyar Gáz Tranzit shares, with the remaining few shares held by the local council of Hévíz, a town at Lake Balaton.

The government resolution says the purchase will go through the state assets manager MNV at a price based on an assets evaluation. MNV will buy the shares held by MVM from its own resources, and it will buy the stake held by MFB Invest "after the economy and development ministers secured the necessary appropriations from the central budget".

Once the transactions are completed, ownership rights over Magyar Gáz Tranzit will be exercised by the Ministry of Interior, the resolution shows. The purchase of Magyar Gáz Tranzit was among the four state assets acquisitions that will make a budget amendement necessary according the explanation of a bill of amendement, tabled by National Economy Minister Mihály Varga in the middle July.

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