New attempt to offload Malév unsuccessful
Tuesday, March 29, 2005, 00:00
The public tender for the sale of a 99.95% state-owned stake in national airline Malév Rt was declared invalid by the management of the State Privatization and Holding Rt (ÁPV) at today?s board meeting as none of the bids met ÁPV?s expectations in every respect. As the proposals contained several valuable elements, the privatization agency will continue the search for an investor by negotiation as opposed to inviting bids a third time, a course of action endorsed by the law after two unsuccessful tenders. ÁPV will invite all five contenders of the bid that closed today to participate in the negotiation, however outsiders are also welcome to join the talks.
As the BBJ reported earlier, the privatization agency decided to invite bids for the state-owned majority stake in the ailing national airline and its Ft 30 billion debt for a second time in late 2004. According to the announcement, the final decision was to be 80% based on the price offered by each contender, while their long-term plans for the future of Malév, with a minimum time frame of five years, accounted for 20% of the total score. Of the nine companies that bought the tender documentation, five potential investors submitted a proposal. ÁPV classified three of the five submissions as a bid, while the other two were described as a statement of intent declaring interest in the privatization. To date, no official information has been released about the identity of the participants and the content of their applications. According to the rumors picked up by the press, the three bidders were Russian Krasair, Irish Cape Clear and British-Hungarian Aviation Solution International, while the remaining two proposals may have been submitted by Italian AirOne and Sky Alliance, whose owners include several Malév pilots. In the information of business daily Napi Gazdaság, none of the potential investors offered more than Ft 200 million for the company.
The first attempt to sell Malév attracted one bid only, from Aviation Solution International, which was deemed invalid.