4iG and Corvinus, representing the Hungarian State, have agreed to buy a 100% stake in Vodafone Hungary for HUF715 billion (€1.77 billion) in cash.
Under the terms of the transaction, which is expected to close by end of 2022, and is subject to confirmatory due diligence, finalising binding transaction documentation and obtaining necessary regulatory approvals, 4iG will become the majority owner of 51% of Vodafone Hungary, while the Hungarian State will have a 49% stake.
According to 4iG, the acquisition of Vodafone Hungary will fundamentally reshape the Hungarian telecoms market. In addition to fixed voice, internet, pay-TV and digital terrestrial broadcasting, 4iG will also become a major player in mobile telecommunications after completion of the transaction. Through its joint acquisition with the Hungarian State, the infocommunications group can accelerate its integration processes in all segments of the industry and, due to its state-of-the-art innovative solutions and technologies, has the potential to play a key role in the digital transformation of the Hungarian economy. The transaction creates significant potential for further growth through cross-selling opportunities, full fixed-to-mobile convergence and scale, resulting in major B2B and B2C revenue synergies.
Commenting on the transaction, Gellért Jászai, chairman and CEO of 4iG, said: “The acquisition of Vodafone Hungary will be the most significant domestic telco transaction in the last thirty years, of a similar extent to the privatisation of Matáv after the regime change. The acquisition will create a predominantly Hungarian-owned group of infocommunications companies and a clear number two operator in the Hungarian market.
“Following the successful completion of the acquisition, our group will have one of the largest digital infrastructures in Hungary, which, due to its prominent role, will become a significant player in Hungarian telecommunications for many decades to come”.
4iG notes that Vodafone Hungary is the second largest player in the Hungarian market in absolute terms of share of subscriptions, serving more than 3.8 million residential and business (3 million mobile and 0.8 million fixed) subscribers, and with 5.0 million (3 million mobile, 0.7 million TV, 0.7 million broadband and 0.6 million fixed voice) RGUs as of July 2022. In total, the combined group created by the proposed acquisition would have 5 million customers and have 7.6 million RGUs as of July 2022.
It adds that Vodafone Hungary’s digital infrastructure could place 4iG among the most advanced operators in the Hungarian fixed voice and internet, cable TV, and mobile markets. The business solutions of 4iG will provide a wide range of digitalisation services to the enterprise and government sectors in the areas of data network solutions, virtual data centres and IoT technologies. Vodafone Hungary was the first company in Hungary to offer 5G services to its subscribers, and the company’s next-generation mobile service is continuously expanding nationwide with hundreds of base stations in Budapest and the Balaton region.
In the financial year 2021/22 Vodafone Hungary’s annual net revenue was HUF278 billion and its adjusted EBITDA exceeded HUF93 billion. The company has more than 3,000 employees.
Source: https://www.broadbandtvnews.com/2022/08/22/vodafone-sells-up-in-hungary/
