Magyar Telekom to merge with T-Mobile Hungary
Thursday, October 6, 2005, 16:15
Hungary's incumbent operator Magyar Telekom has announced on Thursday that its board made a proposal for the merger of Magyar Telekom and its 100% owned subsidiary, T-Mobile Hungary.
MTelekom said there was no legal obstacle to the merger, as it complies with applicable national and international laws. As T-Mobile Hungary is already a fully owned Magyar Telekom subsidiary, the planned step does not require approval from the Hungarian Competition Authority.
The proposal is in line with the mid-term strategy announced in 2004, which emphasized the utilization of group-level synergies as one of its key pillars. After the merger, T-Mobile will continue to operate under an independent brand and as an independent line of business within the Magyar Telekom Group," the company said.
MTelekom expects the merger to improve efficiency, profitability and cash flow in the coming years, and also to further integrate sales activities and better utilize the joint T" brand in marketing and communication.
The board proposal is subject to approval by the shareholders' meeting of both companies.