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Malév to get HUF 2.5 bln capital raise

Shareholders of Hungarian national carrier Malev approved a HUF 2.5 billion capital raise at an extraordinary general meeting on Friday, the Hungarian National Asset Management Company (MNV) said.

The majority owner of the airline - the state - will carry out the raise by April 7 at the latest. The capital will ensure sufficient resources to cover the airline's short-term financing needs, MNV said.

The EGM on Friday was continued after an earlier meeting on March 25 was suspended. The capital raise was the only item on the agenda of the meeting.

At the EGM on March 25, Malev did not vote on a reworked business plan for the airline requested at the previous EGM because of strategic decision expected to be taken in the near future, MNV said. MNV said the outcome of "the talks with potential investors could substantially influence the company's operations in 2011 and its new vision...".

Shareholders did take decisions on changes to the board of directors and the supervisory board, deemed necessary by MNV "in light of progressing talks".