In terms of subscription share, Vodafone is the absolute second largest player on the Hungarian market.
Vodafone Group has agreed with 4iG Nyrt. and Corvinus Zrt. on the sale of 100 percent of Vodafone Magyarország Távközlési Zrt. (Vodafone Magyarország) for a cash consideration corresponding to a total enterprise value of 715 billion forints (1.8 billion euros), announced the Vodafone Group on Monday.
4iG’s announcement revealed that with the acquisition, 4iG Nyrt. can become the majority owner of 51 percent of Vodafone Hungary, while the share of the Hungarian State can be 49 percent. The value of the transaction (Enterprise Value) is HUF 715 billion.
In terms of subscription share, Vodafone is the absolute second largest player on the Hungarian market: it serves more than 3.8 million residential and business subscribers, through which it had more than 5 million revenue-generating subscriptions in July 2022. The group created by the planned acquisition may have a total of 7.6 million RGUs by the end of 2022.
János SubaVodafone Hungary’s communications director, confirmed the news to MTI’s request, but did not wish to comment and did not provide any details.
Nick ReadCEO of Vodafone said:
“The Hungarian government has a clear strategy to create a Hungarian-owned national market-leading company in the ICT sector.
The merger with 4iG will enable Vodafone Hungary, which has successful and innovative activities in the country, to play a significant role in the future growth and development of the sector as a much stronger scale and fully converged service provider. The combined company will strengthen competition and have greater access to investments to promote the digitalization of Hungary”.
About the current acquisition For Geller JászaiPresident and CEO of 4iG said:
The purchase of Vodafone Hungary may be the most significant domestic telecommunications transaction of the past thirty years,
on a similar scale to the privatization of Matáv after the regime change. With the acquisition, a predominantly Hungarian-owned infocommunications company group could be created, which could become the country’s second largest service provider”.
“It is an important result that it was possible to take over the public utility services that were privatized between 1994 and 1998, but it was not possible to create a state-owned mobile service provider, but this should not be abandoned” – he said earlier John Lazarus Minister of Construction and Investment, adding that “to be a nationally owned mobile operator should be tried again in the next cycle”.
The transaction is subject to the completion of due diligence, the execution of transaction documentation by the parties and regulatory approval. The parties plan to close the transaction by the end of 2022.
(MTI/Index)
Opening image: Facebook
