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PSzÁF approves EDF buyout offer for Démász, bourse approves delisting

The State Financial Supervisory Authority (PSzÁF) has approved a buyout offer by Electricite de France International (EDFI) for all outstanding shares in electricity distributor for south Hungary Démász Nyrt, and the Budapest Stock Exchange (BÉT) has approved a request to delist the shares, according to announcements on the bourse's website late on Wednesday.

EDFI, which currently owns 60.91% of Démász shares, will offer Ft 20,000 apiece for the shares between September 25 and November 13. The offer will be managed by Deutsche Bank and CIB Bank Zrt. EDFI notes it must seek permission from the Hungarian Energy Office (MEH) to acquire a stake exceeding 75% in Démász. EDFI submitted its request to MEH on August 28 and a decision by the office is expected within 90 days.
The offer will cost EDFI Ft 28.95 billion, or more than €100 million. Démász shares were trading at Ft 19,470 on Wednesday.
Démász's board found the offer to be acceptable, as did an independent assessment by Ernst and Young. The board has recommended shareholders accept the offer. The delisting of Démász's shares is expected to be approved by an extraordinary shareholders' meeting to convene on October 16. One of the conditions of Démász's privatization in 1995 was that its shares be listed on the BÉT, allowing holders of compensation coupons to bid for the shares. The shares have traded in category 'A' of the bourse since 1998.