Hungary

FHB Jelzálogbank Nyrt (FHB) chairman Zoltan Speder ended the 2009 year on a high note, buying 2.5 million 'A' series shares of the bank's stock through a standard OTC transaction. After paying € 3.9 per share for a total transaction amount of € 9.75 million, Speder has increased his stake in the bank to 16.75 %. Along with Speder controlled A64 Vagyonkezelo, the two hold a combined 10.75 million 'A' series shares in FHB bank.

In preparation for the company's sale to Cogenco International, Hungarian green energy producer Genesis Energy has increased its share capital by €2.48 million through a private placement underwritten by Genesis Capital Management. The increase was a pre-condition of Genesis Energy's purchase by the American co-generation company based in Denver, Colorado. Once the sale is complete Genesis Energy is expected to replace its entire board, request the resignation of CEO Gábor Rényi, and reduce the management staff.

TDC, Denmark's leading provider of land-line phone access, has reached an agreement to sell its Hungarian unit Invitel to CEE investment firm Mid Europa Partners, who will purchase a controlling share for nearly € 7.4 million. In addition to the 64.6% stake in Invitel Holdings AS, Mid Europa has also agreed to take on all rights and obligations of an existing € 34.1 million subordinated PIK loan, and submit a tender offer for a € 125 million loan due in 2013.

In a move recently approved by Hungarian regulatory officials, VCP Capital is on course to double its ownership stake in FHB Jelzálogbank Nyrt (FHB). VCP acquired nearly 20% of the Hungarian bank back in June of this year through a purchase from HSBC Bank plc; a deal that was originally struck in 2007. The government approval allows VCP Finanz Holding Vagyonkezelo Kft. to acquire a minimum 20% direct qualifying share but no more than 33%.

Vienna Capital Partners (VCP) has announced the acquisition of 3,175,000 ordinary shares of FHB Jelzálogbank Nyrt.(FHB), increasing its stake in the Hungarian bank to nearly 20%. The shares were purchased from HSBC Bank plc (HSBC) as part of an agreement reached in late 2007.

Hungarian lender FHB Mortgage Bank is set to receive a substantial amount of new capital from the state. Drawing from the International Monetary Fund's HUF 600 billion bank-rescue package, the Hungarian government will invest HUF 30 billion in FHB, increasing its current stake in the company from 4.11% to 43.57%. In conjunction with the new capital the bank intends to issue special dividend-preference shares and one special voting-preference share with veto rights to the government, along with 46.15 million general dividend-preference shares priced at HUF 100 per share.

Diatron and its shareholder Riverside Company acquired UV-Vis Metrolab S.A., an Argentinian manufacturer of automated clinical chemistry analyzers for the human medical market. Metrolab provides key contributions to the overall goal of developing an international in vitro diagnostics (“IVD”) group.

Ares Life Sciences and Merrill Lynch Global Private Equity will acquire from its current shareholders led by Warburg Pincus its shares in Euromedic International Holdings B.V., a pan-European healthcare services provider headquartered in Budapest.

VCP, through its local unit VCP Finanz Kft., acquired 10.33% of FHB Jelzálogbank Nyrt.

Darby Overseas Investments, Ltd. closed its Darby Converging Europe Mezzanine Fund after reaching a total of EUR 248 million (US $340 million). The final size of the fund will likely be in excess of EUR 300 million with the refinancing of a EUR 65 million bridge loan, thus making it the largest dedicated source of mezzanine finance in Central and Eastern Europe.