Vienna - The Vienna Stock Exchange is to buy a 25 per cent stake in the Budapest Stock Exchange (BSE) held by UniCredit Bank Hungary, making it the BSE's largest shareholder, both sides announced Thursday.

With the acquisition the Vienna Stock Exchange increases its stake in the Budapest exchange from 12.5 per cent to 37.7 per cent.

UniCredit Bank Hungary, the Vienna Stock Exchange and four other mostly Austrian shareholders form a syndicate that owns 68,8 per cent of the BSE. It includes Raiffeisen Zentralbank Oesterreich and Erste Group Bank.

The price has yet to be negotiated, but it is unlikely to be made public, a spokesperson of Bank Austria, UniCredit Hungary's owner, said.

The acquisition of the stake was an expression of the Vienna Stock Exchange's commitment to the BSE, Michael Buhl, CEO of the Vienna Stock Exchange, said.

"In addition, the more simplified structure of the decision makers within the Budapest Stock Exchange will make it possible to implement future activities more swiftly," he said.

The Vienna stock exchange said that activities to promote the internationalization of the Budapest Stock Exchange were planned, without giving details.

UniCredit Bank Hungary will sell its 25 per cent share to the Vienna Stock Exchange in order to focus on the expansion of its banking business, Bank Austria, the bank's owner, announced Thursday.

"The revenue of the sale will be used for UniCredit Bank Hungary's current expansion plans", Bank Austria said in its statement. The plan is to double the number of currently 93 branches in the next two years.

UniCredit Bank Hungary is number seven in the Hungarian banking sector, in terms of total assets amounting to 6.4 billion euros (9.9 billion dollars)

There are 43 companies listed on the Budapest Stock Exchange. Market capitalization at the end of May was 28.45 billion euros. (dpa)