4iG has signed a binding sale and purchase agreement for the acquisition of 100% of Vodafone Hungary for HUF660 billion (€1.67 billion).
In a statement, 4iG says that the deal, which is between its subsidiary Antenna Hungária; Corvinus International Investment representing the Hungarian state; and Vodafone Europe, follows due diligence. It adds that the transaction is expected to close of January 31, with 4iG acquiring a 51% indirect controlling stake and the Hungarian State acquiring a 49% indirect stake in Vodafone Hungary, the second largest telecommunications company on the Hungarian market.
4iG notes that the transaction announced on the Budapest Stock Exchange is of particular importance in the history of Hungarian telecommunications in various respects. In addition to being one of the largest acquisitions in terms of volume since the regime change, the national group created by the merger of fixed and mobile telecoms portfolios of 4iG Group and Vodafone Hungary will reopen the market in numerous service areas and strengthen its role in offering convergent telecoms services.
Commenting on the transaction, Gellért Jászai, chairman of 4iG, said: “The acquisition of Vodafone Hungary opens a new chapter in the Hungarian telecommunications market. It is the first info-communications group in almost thirty years that can operate as a Hungarian majority-owned convergent operator.
“The strategic cooperation between the Hungarian state and 4iG in this transaction will not only transform the market but also improve competitiveness and accelerate the digital transformation of the economy”.
Vodafone is the leading mobile network in Hungary in terms of voice and data reliability with 800,000 fixed line customers and 3 million mobile customers. With the transaction, 4iG and the Hungarian state will acquire Vodafone Hungary’s mobile frequencies, active radio transmission equipment, active antennas and cables, part of the outdoor cabinets, as well as the uplink and optical network serving the towers.
Following the closing of the transaction, the combined portfolio of 4iG Group (DigiMobil) and Vodafone will be the second largest in the mobile voice and internet services market, which is the largest revenue generator. to 4iG will secure market leader position in fixed line internet services and will also become market leader in the TV broadcasting market.
According to preliminary calculations, the telecoms companies owned by the 4iG group will have a total of 7.6 million RGUs in Hungary after the closing of the acquisition.
Broadband TV News notes that the transaction, for a then reported HUF715 billion, was first announced in August last year.
