Privatisation in Hungary is governed by Act XXXIX of 1995 on the Sale of State-Owned Entrepreneurial Assets. This Statute replaced the previous law dating back to 1992. The major changes deal with the organisation of the privatisation agency.

Previously the privatisation process was concentrated in the hand of the State Property Agency (AVU) whereas the Property Management Company (AV Rt) was responsible for the administration of the State property and the transformation into private legal entities.

By the above mentioned new statute both organisations were merged to the new "State Privatisation and Holding Company (APV Rt.)". The task of this new organisation is the earliest possible sale of state-owned shares and business quotas and other assets. In the previous years already 712 state-owned enterprises or shares in such enterprises were sold to private investors. Some hundred are still available in various business areas.

In the last weeks the following privatisation tenders were published:

1. Nagyatad Machine-industry, 95 % of the share capital, target price: 164.350.000 HUF, term: September 13, 1995;
2. Waggonfactory ltd., 39 % of the share capital of 772.000.000,- HUF,
term: September 29, 1995;
3. Oil research branch of ERT, 51 % of the share capital of 1.000.000.000,- HUF
Term: September 27, 1995.

Moreover the privatisation of the Hungarian Gas Supply Corporations was announced. The prequalification material can be bought from August 24, 1995. The privatisation extends to 51 % of the share capital of the following corporations:

1. Gassupply Corp. Del-Alfold, share capital 12.446.000.000 HUF;
2. Gassupply Corp. Del-Dunantul, share capital 5.088.000.000 HUF;
3. Gassupply Corp. Eszak-Dunantul, share capital 4.732.000.000 HUF;
4. Gassupply Corp. Kozep-Dunantuli, share capital 6.375.000.000 HUF;
5. Gassupply Corp. Tiszantul, share capital 15.938.000.000 HUF.

Prequalification term: September 18, 1995

The tender shall be published on November 20, 1995.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further Information please contact: Beiten Burkhardt Mittl & Wegener Lawyers, Jozsef Nador ter 9, H-1051 Budapest, Tel: (36)(1)2661810, Fax: (36)(1) 2661811, or enter a text search "Beiten Burkhardt Mittl & Wegener" and "Business Monitor".