Antenna Hungária, State Sign Deal to Acquire Vodafone Hungary

Telco

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Antenna Hungária and state-owned Corvinus have entered into a final sale and purchase agreement with Vodafone Europe to acquire 100% of Vodafone Hungary, Antenna Hungária owner 4iG said in an announcement posted on the website of the Budapest Stock Exchange on Monday, according to a report by state news wire MTI.

After due diligence, the parties determined that the enterprise value of Vodafone Hungary is HUF 660 billion.

Vodafone noted that the enterprise value - which is under the HUF 715 bln estimate in non-binding heads of terms 4iG and Corvinus signed with Vodafone Group in August - is equivalent to 7.1 times Vodafone Hungary's EBITDA in the business year ended March 31, 2022.

The acquisition is expected to be closed at the end of January, giving 4iG an indirect 51% stake in Vodafone Hungary and the state of Hungary an indirect 49% stake.

In a press release, 4iG said the deal is expected to close on January 31, following the payment of the purchase price.

4iG chairman Gellért Jászai said the acquisition "opens a new chapter" in the local telecommunications market.

"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," he added.

With the transaction, 4iG and the state of Hungary 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, according to the press release.

4iG said the deal could "significantly reshape the market power balance" in Hungary, while enabling 4iG Group to "play a leading role" in the digital transformation of the economy.

Vodafone Hungary has 3 million mobile and 800,000 fixed-line subscribers.

"Vodafone Hungary cannot provide any further information on the transaction. It is important to stress, however, that Vodafone Hungary's business operations are smooth and continuous, and its services are fully operational and of the usual high quality. The operator remains committed to providing an excellent customer experience and to the digital development of Hungary," the telecommunications company told the Budapest Business Journal.

After the deal is closed, telecommunications companies in 4iG's portfolio will have 7.6 million revenue-generating units. The group will be runner-up in the the mobile voice and internet services market and the market leader in the fixed-line internet service and television broadcasting markets.

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