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Owners of troubled meat company clear way for local council to raise stake

The two biggest owners of Pápai Hús 1913 on Wednesday approved a capital raise that gives the Pápa local council a majority stake in the troubled meat company, Pápa mayor Tamás Áldozó told MTI. The transaction will involve raising the company's registered capital from HUF 590 million to HUF 1.3 billion, lifting the local council's direct and indirect stake in Pápai Hús 1913 to 88.4%, Áldozó said. The raise still requires the "contribution" of the Hungarian Development Bank and the Hungarian National Asset Management Company (MNV), he added. Public records show the two owners, Dedeko and Nyugat-Agro, each held 40% of Pápai Hús at the end of 2011. The local council's combined direct and indirect stake was 20%.