Hungary’s 4iG Group has announced a transformation programme of “historic significance” that will significantly increase its efficiency and corporate value.
It will see the group become s one of the first in Europe to decommission the network infrastructure of its telecommunications companies, and to transform the operations of its subsidiaries in order to make more efficient use of business and operational synergies.
According to 4iG, the basis of the programme is the structural separation applied in the international telecommunications market, with which 4iG transforms telecommunications companies into business-commercial and infrastructure companies, and then integrates their operations according to the separated functions. As part of the process, the IT and system integration activities currently operating in 4iG Nyrt. will be organised into an independent IT company.
With the transformation, 4iG Nyrt. will be transformed into a capital market holding company, which supports, directs and controls the operations of its subsidiaries with centralised functions. Preliminary estimates say the structural separation may result in an increase in company value exceeding HUF400 billion (€ ).
The transformation programme will end in 2025, and the management expects from its implementation to increase the profit-generating capacity, operational efficiency and competitiveness of the group.
Commenting on the transformation, Jászai Gellért, president of the 4iG Group, said: “One of the most important goals of implementing the transformation process is to monetize the surplus value in our domestic and foreign network and mobile infrastructure. Based on our current estimates, we expect an increase in company value exceeding HUF 400 billion from the separation of commercial activities and infrastructure.” – said Jászai Gellért, the president of 4iG Nyrt., in connection with the transformation of the corporate group. “The transformation enables the perfect utilization of business and operational synergies, which will have a positive impact on the profit-generating capacity and operational efficiency of our companies. The infrastructure is a planned capital raising in our company, even though it provides an opportunity to significantly reduce our loan portfolio, and it can also broaden the group’s fundraising opportunities. The totality of all these processes contributes significantly to the creation of shareholder value”.
