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MVM and RWE may be interested in purchasing majority stake in Főgáz

  State-owned Hungarian Electricity Works (MVM) and German energy company RWE may be interested in purchasing the Budapest local council’s 50%-plus-one-vote stake in municipal gas company Főgáz, the daily newspaper Népszabadság reported on Monday.


RWE currently owns a 49.83% minority in Főgáz and has preemption rights over the majority stake in the company, which the Budapest local council decided in November to privatize.

The newspaper said that MVM and RWE would evenly share the Főgáz stake to be offered for sale, meaning MVM would acquire 25% and RWE would increase its stake to 75% in the municipal gas company.

Népszabadság reported on November 21 that Russian energy giant Gazprom was also interested in the majority stake in Főgáz. MVM currently owns minority stakes in three RWE-majority-owned Hungarian power concerns - electricity distribution companies Émász and Elmű and the Mátra Power Plant.

MTI reported in November that Főgáz expects consolidated revenue of HUF 195 billion in 2008, an increase of approximately HUF 5 billion from 2007, and it projects after-tax profit of HUF 6 billion this year, down from HUF 8 billion last year. (MTI-Eco)