4iGʼs T-Systems Hungary acquisition falls through
Talks on the sale of T-Systems Hungary to 4iG have been terminated, T-Systems Hungary parent Magyar Telekom and 4iG said in disclosures posted on the website of the Budapest Stock Exchange late Tuesday, state news wire MTI reports.
The parties announced in July that 4iG had agreed to acquire T-Systems Hungary, a much bigger peer, for an undisclosed price. 4iG had planned to finance the acquisition by involving institutional investors and issuing bonds, in addition to taking out credit. The deal was supposed to have helped boost 4iGʼs annual revenue to HUF 200 billion-250 bln in 2-3 years.
On Tuesday, Magyar Telekom and 4iG said they decided to terminate the negotiations regarding the sale of T-Systems Hungary "following 4iGʼs initiative".
T-Systems Hungary will continue to be a part of the Magyar Telekom group, they said.
"Magyar Telekom and 4iG intend to continue exploring cooperation opportunities with the aim of partnering in the field of services sold to the public and enterprise segments. The consortium agreements concluded earlier between the parties remain in effect with unchanged conditions," Magyar Telekom and 4iG added.
In a separate press release from 4iGʼs PR agent, 4iG chairman-CEO Gellért Jászai said the decision to break off the talks on the planned acquisition was "difficult but well-considered".
"Regardless, 4iG has not given up on its plans for expansion in Hungary and the region....In addition to organic growth, 4iG will continue to actively seek acquisition targets that support its growth goals and raise shareholder value," he added.
In the same statement, Magyar Telekom CEO Tibor Rékasi said the telco would "further strengthen its position as market leader", "continuing developments in line with its strategy and with strong strategic partners - among them 4iG".
4iGʼs share price has more than doubled since the start of the year, MTI says.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.