Hungarian state-owned electricity producer MVM agreed with Maneks Group from Serbia to purchase stakes of 33.4% in its subsidiaries Energotehnika – Južna Bačka and Elektromontaža.
Energotehnika – Južna Bačka from Novi Sad in Serbia, a firm that installs substations, gas and heating pipelines and other energy infrastructure, said Hungary’s government-controlled MVM would take over 33.4% of its ownership. The agreement was signed with Energotehnika’s parent Maneks Group, according to the update.
Electricity producer MVM, which is also active in power distribution and trading, is also buying 33.4% in Elektromontaža from Kraljevo, another subsidiary of Maneks Group, the statement adds. The acquisition is an opportunity for MVM to gradually increase its presence in Serbia and the Western Balkans, Energotehnika – Južna Bačka said.
The deal is the accomplishment of Maneks Group’s vision to enter the European Union market, its owner Dragoljub Zbiljić said.
In a filing with the Budapest Stock Exchange, where its bonds are listed, MVM revealed the transaction is scheduled to be completed in the second quarter. The company said in July 2020 that it sees Serbia as a gateway to the markets of Bosnia and Herzegovina, Montenegro, North Macedonia, and Bulgaria.
MVM said in June of last year that it is ready to conduct an initial public offering in Budapest. A month later, it signed a strategic agreement with Maneks Group on joint projects for energy utility construction and the promotion of cross-border cooperation between Hungary and Serbia.