The Hungarian State Holding Company (Magyar Nemzeti Vagyonkezelő Zrt., MNV) will make an offer for the purchase of Rába Holding Nyrt.'s shares. The Government, which took up office last year, has closed the period of mass privatisation and has committed to manage the national property in a responsible way to increase it. In accordance with long-term strategic objectives and economy boosting concepts, it wishes to strengthen government participation in vehicle manufacturing.

The purpose of the transaction is to help the Hungarian State, current owning 16.15% of Rába Holding Nyrt.'s shares through its foundations and various organisations, obtain effective influence in the company. By obtaining the shares, the elbowroom of the government will increase in this strategic sector with a leading role in the economy.

During the previous years property management was characterised by unclear scopes of responsibility and the consequently spreading abuses, with the public property run through for short-term budgetary considerations. The long-term concept of the national property management is built on safeguarding and increasing state property. From the very outset, its purpose is to create long-term values, primarily in strategic industries and at companies.

For this reason the intention to purchase shares is based on firm public policy considerations, but it is also justifiable by business motives. In Hungary vehicle manufacturing plays a key role in economic growth, increasing employment and strengthening small- and medium-sized businesses acting as suppliers to this sector. The government's decisive influence will guarantee the enforcement of national economy and geopolitical considerations in the operation of Rába through the implementation of a future-oriented long-term company development strategy.

Rába Holding Nyrt. has been one of the most significant Hungarian companies of this sector for over a century. Its undisturbed operation and development is of outstanding significance for job creation and boosting external market relations. The company has significant existing capacities, extensive domestic and international relations, a network of suppliers and a competitive knowledge-base to support it. Among others, the company can contribute to the regaining of Hungary's traditional vehicle manufacturing market positions, gradually lost during the past decades. MNV Zrt.'s purchase offer can be approved by the Hungarian Financial Supervisory Authority within maximum 10 business days following the announcement made on 7 November 2011. Based on the purchase offer approved by the Supervision, nearly 30 days will be available for the shareholders of Rába Holding Nyrt. for selling their shares to the Hungarian State.

Joint press release by the Ministry of National Development and the Hungarian State Holding Company

(Ministry of National Development , Department of Communication)