Magyar Telekom plans to legally merge its wholly owned cable service provider T-Kábel to save close to one 1 billion forints ($5 million) in costs per year, the company said in a statement on Monday.
Magyar Telekom said the planned merger, subject to the approval of an extraordinary general meeting scheduled for June 29, also involved Dél-Vonal Kft, a wholly owned subsidiary of T-Kábel.
“The merger will enable the company to increase cost efficiency by exploiting synergies of joint operation, facilitating cost reductions and the optimal usage of financial and human resources,” the company said.
It said the merger required no regulatory approval as the two companies involved were already directly or indirectly controlled by Magyar Telekom.
Magyar Telekom stock closed 1 percent higher at 606 forints on the Budapest Stock Exchange on Monday, underperforming a gain of 2.3 percent in the wider market . (Reuters)