Hungary’s 4iG has entered into a non-binding Term Sheet with the subsidiary of PPF Telecom Group to acquire a 100% stake in Telenor Montenegro for an undisclosed fee.
Telenor Montenegro is the country’s leading mobile operator, with 338,000 subscribers, 150 base stations and 4G coverage reaching more than 98% of the population. Based in the capital, Podgorica, it has been owned by PPF Group since 2018 and had sales revenues of €43 million last year.
Commenting on the transaction, Gellért Jászai, CEO–chairman of 4iG, said: “The acquisition of Telenor Montenegro is in line with 4iG’s regional expansion strategy, and the target’s solid background and market position, as well as its strong revenue generating capacity, can bring high added value to our group.
“We see significant growth potential in the Western Balkans region, and we expect that over the next five years, the region’s economic growth could be boosted significantly by the enlargement of the European Union. We therefore intend to further increase our presence in the region, in addition to the acquisition we have just announced. To this end, we are continuously exploring investment opportunities in the telecoms and IT sectors”.
According to the preliminary agreement, 4iG will start due diligence on the target company, the results of which are expected at the end of September and will allow it to make a final offer for the acquisition of Telenor Montenegro. The parties have agreed to close the transaction by November 30, 2021 at the latest, subject to the approval of the Montenegrin authorities.
Broadband TV News notes that this will be 4iG’s second international acquisition, the company having last month agreed to buy a majority stake in Spacecom.