By reforming the system of savings cooperatives, the Government does not only perform an economic policy task but aspires to achieve important social and development policy goals as well: primarily to improve the development of rural Hungary. Since, in many places, there are only post offices or only savings cooperatives available, it is very important goal to provide national coverage of the comprehensive range of banking, insurance, investment and postal products and services.

In relation to the reinforcement of savings cooperatives integration it seems necessary, beyond the steps already implemented, to form closer ties in the cooperation between the Hungarian Post Company and the new savings cooperatives integration, to make this cooperation permanent and to involve in it the Savings Cooperatives Integration Organisation as well. Beyond bilateral agreements, mutual ownership relations may serve as the guarantee for this closer and permanent cooperation. This in practice means that it is not only the Hungarian Post Company that has a share in the central bank of savings cooperatives but the supervisory and regulatory centre of savings cooperatives, the Savings Cooperatives Integration Organisation (called: SZHISZ) under majority state control, is also to acquire ownership in the Hungarian Post Company. This acquisition of ownership share will provide the right basis for establishing the multifunction service arrangements essential for the achievement of the above social and development policy goals.

Considering the above aspects and reasons, the Government decided that the “SZHISZ” could acquire a minority ownership share of under 25% -exactly: 25% minus 1 vote – in the Hungarian Post Company. The regulatory background of the acquisition of ownership is Act CVI of 2007, according to which permanent state ownership in the Hungarian Post shall be 75% plus 1 vote. In compliance with Article 24 (1) (e) of Act CVI of 2007 , a tender can be avoided in the case of the sale of ownership share to or an acquisition by the Savings Cooperative Integration Organisation considering that it is an important public goal that is implemented hereby and that the decision on the issue was made by a public government decision.

The price of the above minority ownership shall be paid by the “SZHISZ” to the Hungarian State, based on a market-based asset valuation, in cash.

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Article 24 (2) A tender can be avoided if: e) the transaction concerned is especially justified for an objective of public interest according to social or development policy or other aspects and, considering the latter, the Government made a public decision on avoiding a tender.

(Ministry of National Development Communications Department)