French company Suez Environnement and German RWE sold the Budapest Waterworks (Fővárosi Vízművek) to the Budapest municipality for EUR 40 million (HUF 12 billion). The sale followed protracted debate between representatives of the Municipality and Suez/RWE on the terms of the cooperation agreement and the investors’ possible exit from the company. Lakatos Köves and Partners advised Suez and RWE during the negotiations and in the finalization of the transaction.
Magyar Telekom also recently sold its subsidiary, Pro-M Zrt. to the state, for EUR 63 million (HUF 20 billion). Pro-M Zrt. provides the closed-circuit
network services for emergency and security services in Hungary. Lakatos, Köves and Partners advised Magyar Telekom during the negotiations and conclusion of the sale.
Lakatos, Köves and Partners, also represented Suez Environnement in its
litigation against the municipality of Pécs, arising from the takeover by
the city of the waterworks in 2010. Litigation has been finished recently
with an out of court agreement in Vienna.
Lakatos, Köves and Partners has become a leading player in Investment
Protection matters recently in response to the state’s and certain
municipalities’ repeated actions aimed at buying back formerly
privatised assets or in other ways restructuring the operations of
companies operating in several sections and reshaping the domestic market. Both international and local companies are seeking Lakatos, Köves and Partners’ advice on such matters