MVM Purchased Interest in ENKSZ

MVM Hungarian Electricity Ltd. has acquired a 50% interest in ENKSZ First National Utility Provider Ltd. through capital increase. The long-term cooperation of the national energy companies, based on mutual benefits, is especially important for the implementation of the Government’s energy strategy objectives.

On 5 December 2016, ENKSZ signed a contract for sale and purchase with EDF International S.A.S. for the purchase of a 100% block of shares in EDF DÉMÁSZ Ltd. The transaction is foreseen to be closed after approval by the authorities, at the beginning of 2017. ENKSZ is financing the transaction in part from its own funds and in part from external funds. The latter is provided by the MVM Group, which, as a result, has become a shareholder of ENKSZ.

Purchasing DÉMÁSZ becomes possible through the cooperation and overlap of ownership of the two nationally owned companies. With this transaction, the MVM Group may become a more active participant in direct supply to consumers through ENKSZ First National Utility Provider. Bearing in mind the strategic objectives of the shareholders, ENKSZ will establish and operate a national utility service system, which is sustainable in the long term.

ENKSZ, which is responsible for establishing and developing the national utility service system, will remain a company running its business operations on its own and having its market presence on the Hungarian energy market. For the establishment of a cooperation relationship of equal weight between the Hungarian State and the state-owned MVM, ENKSZ may efficiently help the implementation of the Government’s objective that, in addition to the further strengthening of the security of supply in Hungary, the results of utility rate cuts become sustainable in the areas of natural gas, electricity and, in the future, even in other utility services.