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ÁPV targets Ft 250 bln revenue in 2006

The State Privatization and Holding (ÁPV) Rt targets revenue of Ft 250 billion in its 2006 business plan, most of it from the planned sale of a 10% state-owned stake in Hungarian oil and gas company Mol Rt, ÁPV spokesman Péter Oravecz said on Wednesday. ÁPV expects the sale of the stake in Mol to bring in Ft 200 billion, Oravecz said, and dividends on ÁPV's other holdings are expected to generated Ft 9 billion. The sales of Hungarian airline Malév Rt, several state-owned horse racing companies, farming company Bábolna Rt and the Budapest Dockyards are also on the agenda for this year. The business plan is still subject to approval by the government.

 

The government decided last November to offer the 10% stake -- the state holds altogether 11.7% of Mol -- to Mol in two packets over twelve months for a price determined by the shares' stock market price. Under the contract, Mol was allowed to purchase a stake of up to 3% between December 10 and December 30, and could buy the rest of the packet between May 1 and October 27, 2006. If it does not call the option by the October deadline, the stake will be sold to the public in a domestic sale. Calculating with Mol's closing share price of Ft 21,250 on Tuesday, the 10% stake has a market value of about Ft 226 billion.