State utility to hold nat’l gas, electricity distributors
State-owned utility company ENKSZ, which is operating under the new name NKM Nemzeti Közművek, will acquire 100% of the shares of state gas distributor Főgáz through an in-kind contribution of shares and will provide regulated market electricity services nationwide after its unit Démász received the respective universal license, state news wire MTI reported.
The Hungarian Energy and Public Utility Regulatory Authority (MEKH) has given the go-ahead for the transaction, in which the state Hungarian Development Bank (MFB) will swap its 100% stake in Főgáz for shares in NKM Nemzeti Közművek, according to the announcement. The government has declared the transaction of national strategic importance, and it is expected to close by the end of June.
As a result, NKM Nemzeti Közművek will hold 100% stakes in both national gas distributor Főgáz and regional electricity distributor Démász.
Démász will act as the national state electricity provider after it received a universal service providerʼs license from MEKH on June 1, 2017. The license gives Démász access to a further 4.5 million customers in addition to its present 775,000.
The state utility company - still under its earlier name ENKSZ - acquired Démász from Franceʼs EDF for HUF 121 billion in February 2017. ENKSZ earlier acquired stakes in the regulated market business of regional electricity distributors Elmű and Émász from Germanyʼs RWE.
Főgáz was established as the national state gas distributor two years earlier and has been supplying 3.4 million retail customers nationwide.
NKM Nemzeti Közművek will be owned 50% by the State of Hungary and MFB, and 50% by the state-owned Hungarian Electricity Works (MVM) as a result of a series of transactions, the announcement said, without elaborating on the exact distribution of the shares between the state and the development bank.
MVM acquired its 50% stake in ENKSZ in exchange for a loan it granted the latter to acquire Démász in February.
Moody's Affirms Budapest's 'Baa3' Rating
Bulgaria's Household Income, Spending Rise 20% in 2023
Job Fair and Career Prep at Corvinus Starts Tomorrow
Spago Budapest Offering Unique Sunday Brunch Experience
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.
