Are you sure?

Siófok raises stake in Balaton shipping company - newspaper

The local council of Siófok (C Hungary) has acquired 4,017 shares in passenger shipping company Balaton Hajózási Zrt from the local council of the neighboring village of Szántód, raising its share in the company to more than 40%, the business daily Napi Gazdaság reported on Tuesday.

Siófok local council paid over HUF 122 million, or HUF 30,475 per share, for the shares, the daily reported.

Szántód local council retained 3,400 Balaton Hajózási shares, whose nominal value is HUF 20,000 per share.

Although the shipping company generates good profit, six of the twenty-two local councils of communities with public ports on Lake Balaton that originally owned Balaton Hajózási have sold their shares in the company, Napi Gazdaság reported.

A motive for the sale is an obligation shareholders undertook to raise capital in line with their holding by a combined HUF 2 billion by 2012, the daily noted.

The 165-year-old company, which operates ferry-, pleasure- and charter-boat services on Lake Balaton, posted pre-tax profit of HUF 95 million last year.