Electricite de France SA, France's largest power company, is buying the shares it doesn't own in Hungary's biggest power distributor Démász Nyrt after boosting its stake in the company to 95.1% last week.
EDF will pay the same Ft 20,000 ($100) per share price it paid during its public offer that closed November 13, the company said in an e-mailed statement today. The current offer for Démász's minority stake runs until December 6. The French power company began buying shares in Démász, based in Szeged, southeast Hungary, in 1995.
Its main competitor locally is E.ON AG, the country's largest electricity distributor, which has spent €1 billion ($1.3 billion) expanding in Hungary the past 10 years. EDF said it will also initiate the delisting of Démász shares from the Hungarian bourse at its shareholders meeting December 22. Shares in Démász were up 1.2% at 19,840 forint at 11:20 a.m. in Budapest. (Bloomberg)