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EDFI approves conversion of Démász into closed company

Electricite de France International (EDFI), which boosted its stake in Hungarian regional electricity distributor Démász to 100% in a recent buyout offer, decided at an extraordinary shareholders' meeting on Friday to convert Démász into a closed company.

EDFI also made changes to Démász's company charter reflecting shareholders' earlier decision to discontinue the company's network operation activities and place them into a separate unit. EDFI raised its take in Démász from 60.91% to 95.06% in a public purchase offer ended November 13. EDFI paid Ft 20,000 per share in the offer, paying about Ft 25.3 billion for the entire stake, Econews calculated.

As the public purchase offer brought EDFI's stake to above 90%, EDFI bought the remaining stake, exercising its right to squeeze out remaining shareholders. EDFI acquired a 48.98% stake in Démász when it was privatized in 1995. Démász has traded on the Budapest Stock Exchange (BÉT) since 1998. (Mti-Eco)