The Vodafone group announced this Monday that agreed to sell the entire operation which has in the Hungarian market the telecommunications company 4iG and Corvinus, a company controlled by the State. In total, this sale amounts to 715,000 million Hungarian forints, equivalent to €1.8 billion.
This business will give rise to the second largest operator in the Hungarian market, says Vodafone’s note to the market, where it is also underlined that the business is also in accordance with “The will of the Hungarian state to create a national champion in ICT [tecnologias de informação e comunicação]”.
Vodafone’s shared services business in Hungary, called VOIS, is not included in this transaction. This sale is expected to close by the end of this year.
In a statement, Nick Read, CEO of the Vodafone group, points out the “clear strategy of the Hungarian government” for the telecommunications sector. “This combination with 4iG will enable Vodafone Hungary, which has a proud history of success and innovation in the country, to play a leading role in the future growth and development of the sector with a larger scale and fully converged operator.”
The Hungarian press details that the State will have a 49% stake in this new telecommunications “player”, while 4iG will have the majority stake.
In a statement, quoted by the Daily News Hungary website, Márton Nagy, minister of economic development, says the deal is in line with the Viktor Órban government’s strategy to “significantly increase Hungarian ownership in strategic sectors,” such as precisely the case of telecommunications. “Now there is an opportunity for a Hungarian company, with a state share, to become a major player in the telecommunications market.”
In power for 12 years, the Hungarian Prime Minister has launched a strategy to increase the influence of the State in areas such as energy, banking or the media.
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Source: Observadora
