Hungary makes Budapest Airport bid as PM Orban seeks control

Bloomberg

The Hungarian government has made a non-binding offer to buy Budapest Airport Zrt, according to people familiar with the matter, as PM Viktor Orban seeks to gain control of what had been one of the fastest growing hubs in the region before the coronavirus pandemic.
The offer, which was received by the owners of the airport this week, was deemed to be below market value when compared with similar recent deals, including a recent valuation of the Sydney airport, one of the people said.
While the Budapest hub’s owners have until recently ruled out selling their stake, they’ve also expressed concerns about the Hungarian government’s use of hardball tactics to try and force their hand. These included blocking pandemic funds and permits to develop the facility, as well as harsh criticism of how the airport is
run, which the operator considers unfounded, Bloomberg reported in April.
The government would make a “fair offer,” but added that if rejected, the state would seek another method to restore its control, according to an interview with Innovation and
Technology Minister Laszlo Palkovics, the cabinet’s point-person to retake Budapest
Airport, published on the
Vasarnap.hu news website a month ago.
Budapest Airport operator AviAlliance, a German-based airport management company which is also the biggest shareholder, declined to comment. Hungary’s government didn’t reply immediately to a request for comment.
Orban’s government has sought to reduce foreign
ownership in an increasing number of industries it considers strategic, and it has said
the capital’s hub is key for tourism and broader economic development.
Orban, meanwhile, is under fire on multiple fronts. The European Union’s executive on Monday may withhold approval of Hungary’s recovery plan saying it doesn’t go far enough in combating corruption, potentially risking the timely arrival of billions of euros in funding.
The government’s offer for the airport was below fair market value, according to a person familiar with the owners’ assessment.