Hungary's privatisation agency APV will invite bids on Friday to advise and lead manage the sale of a 50 percent plus one share stake in mortgage bank FHB, the APV said in a statement.
The APV is seeking a privatisation strategy that maximises revenue but also keeps FHB's ownership structure stable and does not jeopardize its current strategy, the APV added.
Although APV has not specified how it would like to sell its FHB stake, analysts said its preconditions are likely to mean a sale through convertible bonds.
A similar strategy was used last year when the government sold its 25 percent stake in drug producer Richter Gedeon through a five-year convertible bond. That transaction, a $639 million deal, beat revenue expectations and the government said at the time it was likely to use that strategy again.
As FHB's mortgages are sold by several domestic banks, the government has been aiming to keep the bank's ownership structure diverse and prevent the appearance of a large strategic owner.
Source: Reuters
06.05.2005