Budapest city council authorized Mayor Istvan Tarlos to repurchase a minority stake in the Hungarian capital’s waterworks from Suez Environnement SA (SEV) and RWE Aqua GmBH, Magyar Nemzet reported.
The city will pay 15.1 billion forint ($69 million) for the stake and management rights in Budapest Vizmuvek Zrt., which the foreign investors purchased for 16.5 billion forint in 1997, according to the newspaper, which cited Tarlos. The city will finance the deal from credit and from payments by other utility companies, Nemzet said.
Budapest will exercise its option to cancel the contract should the parties fail to reach an agreement within 90 days, Tarlos said, according to Nemzet.
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