ING to sell Budapest bourse stake to Erste Bank

ING Bank will sell its 2.3% stake in the Budapest Stock Exchange (BSE) to Erste Bank following the Hungarian Parliament vote to broaden the authority of the BSE. While the Hungarian Government plan to increase incentives for small and medium-sized enterprises to enter the bourse, Erste bank sees the acquisition as a strategic investment.

The Hungarian branch of ING Bank is planning to sell a 2.3% stake in the Budapest Stock Exchange to the local branch of Erste Bank, according to a report published by Hungarian news agency MTI today.

Erste, whose unit Erste Befektetési is one of the most active brokerages on the bourse, sees the acquisition as a strategic investment, MTI reported.

On May 24 the Hungarian Parliament voted to broaden the authority of the Budapest Stock Exchange (BSE), which the bourse welcomed. The government is planning incentives for SMEs to help enter the bourse, according to reports.

The National Bank of Hungary (MNB) officially announced the takeover of the BSE in November when it acquired majority ownership in the institution. Central bank Deputy Governor Márton Nagy was appointed chairman of the BSE and the MNB pledged to prepare plans for developing the Budapest bourse soon after the takeover.