The Hungarian government has begun talks with Russia’s Surgutneftegaz regarding the 21.2pc stake Surgut holds in Hungarian oil and gas group MOL, Reuters reported, citing a statement of the Hungarian Development Ministry, on Wednesday.
“The Hungarian government is committed to strongly asserting national interest in every strategic area – and the government considers the energy sector a key area in this respect – and strengthening the state’s role within legal bounds,” the news agency cited the statement.
“In this spirit, it has begun talks with Russia’s Surgutneftegaz about the 21.2pc it holds in MOL.”
The ministry said Russia and Hungary aimed to find a “reassuring solution” to the issue as soon as possible.
Reuters noted that Surgutneftegaz purchased its MOL shares from the Austrian OMV last year for EUR 1.4bn. MOL considered the investment a hostile takeover, and the Russian company has been blocked from attending MOL’s shareholders’ meetings since and the Hungarian company paid no dividends over the past two years.
Minister of National Development Tamas Fellegi indicated in a statement given to Reuters in June that it would be desirable to see the MOL stake in Hungarian hands again, but declined to answer the question whether the government would directly repurchase the stake.
Hungarian market analysts say MOL’s share price would benefit in the short term if the state repurchased the MOL stake from Surgutneftegaz. It is unclear, however, how the central budget, which may need to bail out loss-making public-transport companies, could raise the necessary amount. “In the current situation, it is doubtful if markets would cheer a step increasing the debt”, the news agency cited one analyst’s view.
Surgut’s 21.1pc stake is worth around HUF 500bn at current prices, and Hungary would likely have to pay a premium, the analyst cited by Reuters said.