Hungexpo privatization completed
Monday, March 7, 2005, 00:00
The consortium of French GL Events, Hungarian TriGránit Rt and WestEnd Rt. won the privatization tender for the 77.01% state-owned stake in Hungexpo Rt, the operator of Budapest?s fair grounds operator, Imre Baranyi, a board member of the State Privatization and Holding Rt (ÁPV) said. According to Baranyi, who also chaired the committee that evaluated the bids, the winner was ranked second in the first round of the tender with a Ft 4.6 billion bid, which is raised nearly twofold in the next round. The best offer in the first round, was made by Carion Holding Rt, which is owned by Hungarian individuals and has recently made the headlines on account of a real estate transaction with Budapest Airport Rt. However, Carion was disqualified in the second rounds as its Ft 5.9 billion bid was not backed by a bank guarantee. The buyer will carry out Ft 7.5 billion worth of development at Hungexpo, with Ft 5 billion to be invested in the first five years. The expo site will not be moved from its current location in Dist. 10. Another 5% of the company that is still in state hands will be offered for sale to Hungexpo employees, while GL Events has agreed to buy the local municipality?s remaining 17.99% stake at the same share price should the local council wish to sell. The stake is thus worth Ft 1.86 billion in total.