Hungary is reversing the privatization of its stock exchange. For this purpose, Hungarian National Bank (MNB) buys from the Austrians their majority on the Budapest Stock Exchange. Wiener Börse AG (50.45%) and the Kontrollbank (18.35%) were not yet ready to comment this news on Monday.
However, Hungarian media reported today that the Hungarian central bank has already secured its stock market majority and is trading with the Vienna Stock Exchange. According to a report by the Hungarian news agency MTI, the deal has already been completed. The Hungarian central bank had until now a smaller stockpile of almost seven percent on the Budapest Stock Exchange, and the state is also involved in state enterprises and banks.
According to the portal www.napi.hu, the share purchase price has been 3.550 forint and the price for the Austrian package amounts to 13.2 billion forint (or 42.6 million euros). Thus, the total value of the Budapest stock exchange would be 19.2 billion Forint.
Eastern network is getting smaller
In May 2004, Wiener Börse AG and four Austrian banks jointly acquired the majority of 68% of the Budapest Stock Exchange. In 2008, the Vienna Stock Exchange and the Austrian Control Bank purchased the bank consortium. The Budapest stake was held in Vienna via the stock exchange holding company CEESEG (CEE Stock Exchange Group).
The Eastern European network of the Vienna Stock Exchange is currently shrinking. In July, the stock market sold its 100% on the Ljubljana exchange to the stock exchange of Zagreb, on condition that they keep all official permits. The closing of this deal in Slovenia is expected in the end of this year. The stock exchange of Ljubljana was the smallest stock exchange of the CEESEG holding company in Vienna.
Translated by: Elena Garanina (08.02.2017)