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Hungarian state raises capital in railway company GySEV

The state of Hungary raised the registered capital in regional Austro-Hungarian railroad company GySEV by HUF 951 million (€3.38 million) to HUF 6.76 billion at the company's general assembly, GySEV informed MTI.

The Hungarian state raised its stake in GySEV through the non-cash contribution of real estate and property located along the company's Sopron-Szombathely and Szombathely-Szentgotthárd railway lines in western Hungary.

Following the capital increase, the Hungarian state's stake in GySEV rose to 66.5%, while those of the state of Austria and Speditions Holding declined to 28.6% and 4.9%, respectively.

The state of Austria will decide on a capital contribution to bring its stake back to 33.3%, the level prior the capital increase by August 31. The Austria state will carry out the capital increase in cash.

The new owner of Rail Cargo Austria unit Speditions Holding's stake in the company will have one year to decide on parttaking in the capital increase. Late last year the European Union set the sale of the GySEV stake by Rail Cargo Austria (RCA) - the freight unit of state-owned Austrian railway company OBB - as a condition for RCA's acquisition of MÁV Cargo, the freight unit of Hungarian railway company MÁV.

The owners of GySEV also accepted the company's 2008 annual report, according to which the GySEV transported 4.8 million passengers and 6.5 million tons of freight last year. The report showed that GySEV's Hungarian operations posted profit of HUF 67 million on turnover of HUF 27 billion in 2008, while its Austrian operations posted profit of €95,000 (or HUF 25 million) on turnover of €24.5 million (HUF 7 billion) last year. (MTI – Econews)