Nordtelekom shareholders approve HUF 900m note program

Hungary's Nordtelekom owners have approved a maximum HUF 900m public note program designed to fund further business developments, the telecom listed in category "B" of the Budapest Stock Exchange said on Monday.

The board will decide on the details and timing of the note program later, depending on the business environment. The bonds are planned to be subscribed with the investment company Equilor.

Nordtelekom said Monday it planned further acquisitions after its recent agreement to purchase the clients and assets of telco Beltáv, and it is continuously watching potential target companies or clients' bases as it expects the crisis to reshuffle the Hungarian telecom market further.

Beside acquisitions Nordtelekom plans to increase costumer penetration through its just expanded network and raise the number of customers through renewing and extending its distribution network in moves to improve efficiency as ways to support growth.

Nordtelekom decided early last year to embark on acquisitions, and to raise capital and use at most HUF 200m of the proceeds to acquire Beltáv.

The Beltáv transaction, signed last week, will increase the number of its clients by thousands to over 10,000. An independent auditor valued Beltáv’s purchased assets at HUF 166m. As a result of the acquisition, Nordtelekom could soon provide internet access through its own network in Budapest, Gyor and Dunaújváros.

Nordtelekom had after-tax profit of HUF 11.4m on revenue of HUF 117m in the first half of 2011. Net assets stood at HUF 243m at the end of 2010.