Re-sale of Budapest's Ferihegy airport completed

Germany's Hochtief signed a share purchase agreement to buy Budapest Airport from UK airport operator BAA for Ft 470 billion, it was announced yesterday. Hungarian and EU competition authorities have already approved the transaction.

Hochtief will receive a 75% share in Budapest Airport and will inherit operation rights to Ferihegy for 75 years. The German construction firm will also take on commitments set out in the privatisation agreement from now until 2011, which are estimated at Ft 62 billion, and include minimum levels of investment and the honouring of the collective bargaining agreement.

BAA's Budapest Airport CEO, Stewart Wingate said "the announcement ends a period of uncertainty over Budapest Airport's future ownership. Under BAA, Budapest Airport has made significant progress, transforming from a state enterprise into a private firm, and has undergone significant restructuring," he added.

The purchase price will be paid in two instalments and its value equates with the price offered by Hochtief during the 2005 privatisation. Hochtief was runner-up on that occasion, as privatisation agency ÁPV sold a 75% stake in Budapest Airport to BAA for Ft 465.5 billion. Hochtief initially sued the ÁPV, but later dropped the case.

The sale of Budapest Airport comes after Spanish Ferrovial took over BAA in June 2006, but later decided to offload several of its subsidiaries.

The above story is just one of more than two dozen published today by Hungary Around the Clock, the most comprehensive source of daily English-language news about Hungary. For a free trial of HATC, click here. Hungarian news sources include Népszabadság; Magyar Hírlap; Világgazdaság; Napi Gazdaság; Magyar Nemzet; Népszava; Kossuth Rádió news and Hungarian television's nightly news broadcast.

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