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Operators
January 11, 2023
Deal is said to be one of the largest transactions ever completed in Hungary
Vodafone Hungary has been sold to state networks Corvinus Zrt and Antenna Hungária Zrt for £1,5 billion. The sale will complete on January 31 and is one of the largest acquisitions in Hungary.
4iG Nyrt is a Hungarian majority-owned company based in Budapest and claims to be the leading telecommunications and IT group in Hungary and the Western Balkan region. Corvinus International Investment Zrt. (Corvinus Zrt.) is a sovereign investment management company wholly owned by the State of Hungary
The national group created by the merger of fixed and mobile telecoms portfolios of 4iG Group and Vodafone Hungary will reopen the market to convergent telecoms services.
The telecom companies owned by the 4iG group will have a total of 7.6 million RGUs (revenue-generating units) in Hungary after the acquisition.
Vodafone’s £1.5 billion represents a multiple of 8.4 of earnings for the 12 months ended 31 March 2022. Vodafone is the leading mobile network in Hungary with 800,000 fixed-line customers and three million mobile customers. 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.
The acquisition of Vodafone Hungary could also significantly reshape the market power balance in Hungary, and the state-of-the-art solutions and innovative technologies will enable 4iG Group to play a leading role in the digital transformation of the Hungarian economy.
Margherita Della Valle, Vodafone Group’s interim Chief Executive said: “This combination establishes a scaled converged operator across mobile and fixed communications and supports the Hungarian government’s goal of creating a national Information and Communications Technology champion. The combined entity will increase competition and accelerate investment in the ongoing digitalisation of Hungary.”
Gellért Jászai, Chairman of 4iG Nyrtsaid: “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”.