Hungary wants to buy Budapest airport
Hungary wants to buy Budapest Airport from its foreign shareholders. A way to return the facility to the state and protect [...]
BUD
Hungary wants to buy Budapest Airport by its foreign shareholders. A way to restore structure to the state and protect what the government says are national interests. The government of the prime minister Viktor Orban Has expressed interest in purchasing a majority stake In Hungary's main international airport, saying that its past privatization had been contrary to the country's "strategic interests." The prime minister said he wanted to see the airport in national hands, but so far its owners have expressed no interest in selling it.
Orban's target and bid for Budapest airport.
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Since Orban took power in 2010, his government has strengthened Hungarian ownership in strategic sectors such as energy, banking, and media. Budapest Airport's largest shareholder with 55.44% is AviAlliance GmbH, formerly Hochtief AirPort GmbH, owned by Canada's Public Sector Pension Investment Board (PSPInvestments). AviAlliance GmbH said it received an offer from the Hungarian government that it had not requested.
"We can confirm that the Hungarian government has submitted a non-binding offer to Budapest Airport shareholders. In the interest of our co-shareholders and for legal reasons, we are obliged to review potential offers," AviAlliance said in an e-mailed response to questions from Reuters. "This negotiation was not initiated by us. AviAlliance is a committed long-term investor. We very much hope to have the opportunity to continue to invest in this airport." GIC Special Investments of Singapore and Caisse dedépôt et placement du Québec (CDPQ) of Canada each hold slightly more than 21%.
Photos of David Mark by Pixabay
The Hungarian government's criticism
The Hungarian government Would like to acquire a majority stake again in Budapest Airport through negotiations with the owners. This was reiterated by the Ministry of Innovation and Technology. In a note it pointed out that it is "strategically important to have the airport back in the hands of Hungarians." The Orban government has expanded state ownership in several areas since it took office in 2010. The state currently has no stake in the airport, which was privatized in 2005.
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In an interview last month, Innovation and Technology Minister Laszlo Palkovics, who was in charge of the airport deal, said the airport takeover is key to reviving tourism after the pandemic and criticized its owners for not investing enough in the quality of services.
The services offered by the Budapest airport
Budapest Airport is medium-sized and growing rapidly. It has benefited from the low-cost travel boom but is facing a difficult market because of the pandemic. AviAlliance holds interests in five airports including. Hamburg, Dusseldorf and Athens. On the situation, he said that, like all European airports, Budapest was severely affected by Covid-19. "We have continued our investments in the airport's infrastructure and operations during the current crisis. We believe in its rapid economic recovery and long-term growth potential."
