BUDAPEST, Feb 27 (Reuters) - Hungary will almost fully renationalise air carrier Malev [MALV.UL] under a deal signed by the government and Malev’s Hungarian and Russian shareholders in a bid to save the airline, the government said on Saturday.
Under the agreement, reached after lengthy negotiations, the Hungarian government will raise Malev’s capital by 25.2 billion Hungarian forints ($127.8 million) by injecting cash into the company and converting its debts into equity.
This will result in the state holding a 95 percent stake in the airline, while the Russian shareholder AirBridge will have a 5 percent stake, the finance ministry said in a statement.
“The Hungarian state taking a majority stake (in Malev) will create the possibility for the company to operate in a financially stable way,” the ministry said.
Reporting by Krisztina Than; Editing by David Gregorio