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Pápa local council near deal to boost stake in troubled meat company

Shareholders of Pápai Hús 1913 have accepted an offer that clears the way for the local council of Pápa to acquire a majority stake in the troubled meat company, mayor Tamás Áldozó said on Wednesday. Dedeko and Nyugat-Agro accepted the offer that would restructure the ownership through a capital raise, making the local council the biggest owner, Áldozó said. Talks with the parties will continue Wednesday afternoon, he added. The local council already owns a direct and indirect stake in Pápai Hús 1913. It earlier provided the company with a HUF 650 million loan through the municipality's industrial park operator, circumventing a European Union prohibition on direct support to enterprises.