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Canongate gains 7.54% share in econet.hu, conducts futures deal for 22.18% stake

Canongate Investments conducted transactions on Monday that left the company with a 7.54% stake in IT company econet.hu and provided Canongate with the option of raising its share in econet.hu to 22.18% later this year, econet.hu announced on the Budapest Stock Exchange (BSE) website.

Canongate Investments acquired from Stirling Investments in an OTC transaction the latter company's entire stake of 6,489,882 shares in IT company econet.hu. at an average price of HUF 55 per share. Csaba Balázs, who serves on the board of directors of econet.hu, owns 98% of both Canongate Investments and Stirling Investments. Canongate Investments, which held no econet.hu shares prior to the transaction, gained a 13.11% stake in econet.hu as a result of the purchase. Canongate on Monday subsequently sold 2,760,000 shares in econet.hu at the BSE on Monday at an average price of HUF 55 per share, thus reducing the company's stake in econet.hu to 3,729,882 shares, or a 7.54% stake in the company. Also on Monday, Canongate entered into a futures transaction expiring in December 2009 for the purchase of 7,250,000 econet.hu shares at an average price of HUF 58.62 per share. Canongate's stake in econet.hu would rise to 22.18% from the current 7.54% if the futures transaction is closed, though econet.hu limits shareholders to 20% voting rights in the company. On Monday, econet.hu's share value rose 1.85% to HUF 55 in trade at the BSE, fluctuating between an intra-session low of HUF 54 and an intra-session high of HUF 58. (MTI-Econews)