Owners now willing to sell Budapest Airport

The government made a non-binding offer for Budapest Airport Zrt. last week, Bloomberg reported on Saturday. The offer, unlike previous ones, was not refused but was found to be under the market price according to Magyar Nemzet.

This is a significant change as the foreign owners of the operator of the capital’s Ferenc Liszt International Airport have so far said selling their stake was out of the question.

Minister of Innovation and Technology László Palkovics declined to comment on the deal in progress when asked by Magyar Nemzet. Similarly, German-based airport operator AviAlliance, one of the owners of Budapest Airport, made no comments on Bloomberg’s inquiry.

The Hungarian government is trying to re-acquire the majority stake of Budapest Airport. In recent statements, Palkovics said he current majority owner, a Canadian pension fund, does not consider it important to contribute to developing the Hungarian economy, stimulate tourism, and meet transport policy goals with a modern airport.

The owners have thus far been unwilling to sell their stakes and said they were “committed long-term owners”, adding that the company’s operation and finances were stable despite the huge losses caused by COVID-19 last year. Meanwhile, they voiced fears that the Hungarian government may put pressure on them to change their minds, such as by cancelling the grants and subsidies available during the pandemic or by not authorising the development of facilities.

So far, the government has only used criticism. Palkovics, who is also government commissioner in charge of acquiring the majority stake in Budapest Airport, previously told Portfolio that the airport had not developed since its privatisation in 2005.

The government intends to make a fair offer for the airport operator, but if the owners reject this, it may use other methods to gain control, Palkovics sad at the time.

The government need the airport both for strategic and business reasons, especially now when the Hungarian economy is restarting after the coronavirus pandemic, in which tourism will play a key role,

Palkovics told Figyelő two weeks ago.

Neither Bloomberg nor Magyar Nemzet named the price the government offered for the airport.

Cover photo: MTI / Tamás Kovács