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Hungary's Magyar Telekom buys content firms for Ft 1 bln

Hungary's largest telecom group, Magyar Telekom Nyrt, owned by Germany's Deutsche Telekom AG, has announced on Wednesday it has signed contracts to acquire two service providers in the mobile multimedia and content market for a combined Ft 1 billion (€3.94 million).

"Magyar Telekom Nyrt has agreed to acquire a 100% stake in MobilPress and a 75.05% stake in MFactory for a combined purchase price of Ft 1 billion. In addition, the company also has an option to increase its stake in MFactory to 100% from 2009," Magyar Telekom said in a statement on the website of the Budapest Stock Exchange (BÉT).

“The transaction will enable the Magyar Telekom Group to enhance its presence in the mobile content business and develop a multi-channel multimedia service centre to capture opportunities in this growing segment," the company added. The MobilPress transaction is subject to the approval of the Competition Office.

MobilPress is one of the major Hungarian mobile content providers and manages, among others, the t-zones portal. MFactory is one of the leading Hungarian mobile content producers and aggregators. The combined revenue of the companies in 2006 is anticipated to be around Ft 1.8 billion with an EBITDA of Ft 120 million. MTelekom closed Wednesday trade at Ft 1,000 on the BSE, down 0.3% from its finish on Tuesday, while the BUX index fell 1.4% to 23,583.8 points. (