Hungarian government eyes majority stake in Budapest Airport (updated)

PSP Swiss Property AG

28/05/2021 15:49

(Updates with government statement)
    BUDAPEST, May 28 (Reuters) - Prime Minister Viktor Orban's
government aims to start talks on acquiring a majority stake in
Hungary's main international airport in Budapest, it said on
Friday, saying its privatisation had been against the country's
"strategic interests".
    Earlier the pro-government daily Magyar Nemzet reported that
the Orban government, which has expanded state ownership in
several key sectors, was eyeing a majority stake in the airport,
citing unspecified industry sources.
    The airport's majority owner is now Canadian pension
investment management group PSP with just over 55%. Singapore's
GIC Special Investments and Canada's Caisse de dépôt et
placement du Québec each hold about 20%.
    The Hungarian state currently has no stake in the airport,
which was privatised in 2005.
    "It has since become quite evident that the sale was against
Hungary's strategic interests and (the sale) also made
investments to enhance the quality of service for passengers
exceedingly difficult," the government said in its statement.
    Budapest Airport is a fast-growing, medium-sized airport
that has benefited from a boom in low-cost travel, but is facing
a difficult market due to the coronavirus pandemic that has
sharply reduced the number of travellers.
    The government said it has assigned the task of acquiring a
majority stake for the Hungarian state to Innovation and
Technology Minister Laszlo Palkovics. He will be in charge of
the process as government commissioner from June 1.
    Budapest Airport's press office did not immediately respond
to emailed questions for comment.
    Orban, a nationalist often at loggerheads with the European
Commission on a range of issues, has previously said he wants to
see the airport in domestic hands, but until now its owners have
expressed no interest in selling it.
    Hungarian media last year reported that local real estate
management group Indotek was part of a consortium in talks to
buy Budapest Airport, citing Indotek owner and CEO Daniel
Jellinek.
    Indotek was heading a consortium of Hungarian and U.S.
companies, Jellinek said at that time, adding that none of the
members have political connections.
    Indotek did not immediately reply on Friday to emailed
Reuters requests for comment.

 (Reporting by Marton Dunai and Gergely Szakacs, Editing by
Gareth Jones)
 ((marton.dunai@tr.com; https://reut.rs/2OXGXbW;))