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| Attila Kovács/MTI

Hungary is to re-privatize Dunaferr steel company

D&T
August 21, 2013

The Hungarian Ministry of National Economy has issued a press release, which reiterated plans to make a bid for ISD Dunaferr Duna Steel Works and re-privatize the struggling industry behemoth, the financial website portfolio.hu reports.

The statement says Economy Minister Mihály Varga has initiated talks with shareholders with the purpose of Hungary acquiring steel company Dunaferr.

"I have been authorized by Hungary's government to act on its behalf and initiate talks aiming to acquire ISD Dunaferr Duna Steel Works with the management of the company without further delay", Varga wrote in a letter sent to Dunaferr CEO Evgeny Tankhilevich on Wednesday.

According to the press release quoted by portfolio.hu,  "i line with a government decision made on Monday, the Economy Minister is authorized to initiate talks that could potentially lead to a bid to buy and eventually the re-privatisation of ISD Dunaferr. Once Dunaferr shareholders have reached a decision to that effect, the next step is to launch preliminary talks,"

In the letter, Varga is requesting the CEO of the company to inform shareholders of Hungary's intention to buy Dunaferr. The ministry is hopeful that talks may commence at the earliest opportunity.

The ministry statement reminds that the formerly state-owned Duna Steel Works was privatised in 2004. In addition to paying a price of HUF 444 million, the new owners pledged to re-capitalize the company as well as long-term investment. The Dunaferr later changed hands in 2007 and once more in 2010.

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