After more than a year of intensive negotiations, the Hungarian government bought back majority ownership of Budapest Airport on 6 June 2024. The good news was announced by Minister of National Economy Márton Nagy. ‘We have regained control of the airport, and after almost twenty years, it is back in Hungarian hands,’ the minister said in a statement.
The Liszt Ferenc International Airport was taken out of state hands in 2005 when the left-wing government, led by then Prime Minister Ferenc Gyurcsány, now the president of the Democratic Coalition party, signed a highly unfavourable asset management contract. ‘Ownership of the airport is a sovereignty issue, which is of strategic importance not only for passenger transport and tourism, but also for freight transport, and is a key artery of economic circulation,’ said Márton Nagy. He reminded that the sale of the airport took place during an economic boom, which makes the ‘historic crime’ even more serious.
‘The current government, on the other hand, has been able to correct this inexcusable mistake and buy back the airport, even in the current wartime situation,’ the statement pointed out.
The statement highlighted that the repurchase of Budapest Airport Zrt is the most complex and largest economic transaction since the regime change. Negotiations between Corvinus International Investment Ltd and VINCI Airports took place in two rounds. The deal was concluded with an international group of sellers, including AviAlliance, GIC, and CDPQ. Additionally, an agreement was reached with the international group of creditors financing the airport to close the transaction.
Thanks to the agreement reached on Thursday, the
Hungarian state will acquire an 80 per cent stake in Budapest Airport Zrt
in proportion to the purchase price, while the French co-investor VINCI will hold 20 per cent. The purchase price is €3.1 billion, and the successful agreement with the consortium of lenders has extended the €1.44 billion loan taken out by the previous owners, the statement said.
To fund the buy-back, the Hungarian state sold several assets. Recently, Corvinus International Investment Ltd, a fully state-owned company, successfully sold its stakes in Erste Bank Hungary Zrt and Yettel Hungary, as well as the majority of its stakes in domestic VIG companies.
The financial closure of the three transactions generated significant revenues for the state, totalling more than €700 million (nearly 270 billion HUF), which were used to finance the buy-back of Budapest Airport. The remainder of the purchase price was financed by Corvinus International Investment Ltd through a development loan from Eximbank and a capital increase from the budget.
The work will continue after the reacqusition, as the Hungarian government and the French co-investor-operator aim
to transform Budapest Airport into one of the world’s premier airports.
‘Through tourism and cargo, the airport will significantly enhance our country’s role as a meeting point, further strengthening the connection between Western and Eastern capital and high technology,’ the statement said.
The future objectives of the airport will be presented in early July.
As reported by Hungarian Conservative, the Hungarian state made a purchase offer in the summer of 2023 for the majority ownership (51 per cent) of Budapest Airport, with the reported purchase price being between €2–3 billion.
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