AviAlliance begins negotiations to sell Budapest airport to Hungary
(Bloomberg) – AviAlliance, a Germany-based airport management company which is the largest shareholder in Budapest airport, said it has entered into formal talks with the Hungarian government over the sale of the hub.
The decision to initiate the due diligence process follows a revised offer from Prime Minister Viktor Orban’s office, which made the purchase of the airport a priority.
“This time, the price offered by the Hungarian government for the takeover of the airport has forced us and our shareholders to consider it in the long-term interest of our funds,” according to a statement from AviAlliance on Monday. “While this is potentially the first step towards selling the airport, we would like to stress that the outcome of such a process is not predetermined.”
A Hungarian government-led consortium has offered 4.44 billion euros ($ 5.1 billion) for full control of Budapest airport, the business daily Vilaggazdasag reported on October 19. Orban wants to sign a purchase agreement this year and close the deal by March 31, days before the general election, according to the report. The state would hold at least 51% of the airport’s capital as part of a consortium but is also ready to take full ownership, the newspaper said.
Bloomberg reported that the current consortium of buyers includes Hungarian refiner Mol Nyrt. and the real estate company Indotek Group. Indotek is run by Daniel Jellinek, who had trade deals with the Orban family.
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