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European Bank to invest in Hungary's second largest packaging printer
The European Bank for Reconstruction and Development today signed a DM 10 million (ECU 5.0 million equivalent) loan agreement with Kner Nyomda Rt. (Kner), Hungary's second largest printer of packaging materials, and has also agreed to subscribe for 20.4% of the equity in the company.
The Bank's investment will permit the company to finance a substantial modernisation and capacity expansion programme which will enable Kner to increase sales and exports as well as improve its environmental compliance.
Ron Freeman, First Vice President for Merchant Banking, said "the Bank's priority is to aid the transition of eastern and central European countries to market economies. By investing in Kner Nyomda Rt. the Bank is fulfilling its commitment and is fostering the development of a healthy competitive environment."
Kner was one of the 20 companies included in Hungary's first Privatisation Programme and was successfully privatised in May 1992 when 85% of the company was acquired in competitive bidding. The company's other major shareholders are COFINEC S.A. (Compagnie Financière pour l'Europe Centrale) with 40.7% and HICL (Hungarian Investment Company Ltd) with 20.4% of the firm's equity.
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