Hungary’s MVM Group and Budapest Stock Exchange have signed a long-term, five-year strategic cooperation agreement to accelerate the sustainable development of the Hungarian economy and to take steps towards the listing of the state-owned power group.
The agreement was signed on behalf of the MVM Group by György Kóbor, President and CEO and János Sum, Deputy Chief Financial Officer and on behalf of the Budapest Stock Exchange by Richárd Végh, CEO and István Máté-Tóth, Deputy CEO.
“The cooperation with the Budapest Stock Exchange, as the central player of the domestic capital market, provides an excellent basis to map the financing opportunities for our strategy,” said Mr Kóbor.
According to MVM exploiting the synergies between the activities of the two organizations can generate commercially, environmentally and socially sustainable investments. At the same time, the company’s CEO emphasised that the main goal is to bring the group to a level of financial maturity that it can be listed on the stock exchange.
The cooperation also covers certain aspects of financing MVM Group’s energy market strategy, the facilitation of capital market financing of the Environment, Social and Governance (ESG) targets pursued by the company and the development of energy trading-related services of clearinghouses owned by the Budapest Stock Exchange.
“The Budapest Stock Exchange attached great importance to the listing of state-owned companies as well as to the promotion of ESG investments,” added Richárd Végh, CEO of the Budapest Stock Exchange. “The MVM Group plays a key role in Hungary’s economy and energy supply, and I am convinced that the group can further strengthen its position with the services of the BSE.”
Last year, Andrea Bartfai-Mager, Hungarian Minister without Portfolio for the Development of Public Assets stated that MVM needs to expand in central Europe and possibly list some of its shares on the stock market to boost its weight in the European energy sector.
MVM Group is a major integrated player of the domestic electricity and gas market in Hungary and it is also active in the electricity industry of the wider region. The Group consists of more than 60 companies. After becoming the sole owner of the National Public Utilities Company (NKM) last year MVM Group has secured its positions as Hungaryʼs largest operating energy holding.