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MTel shareholders approve merger of cable unit

Shareholders of Magyar Telekom approved a proposal to merge its cable unit T-Kábel with the parent company at an extraordinary general meeting on Monday.

Shareholders with 64.57% of voting rights participated at the meeting.

Under the decision, T-Kábel and its wholly-owned unit Dél-Vonal are to be merged with Magyar Telekom. Magyar Telekom holds a 16.4% direct stake in T-Kábel and an indirect 83.6% stake through its wholly-owned unit Investel.

Magyar Telekom CEO Christopher Mattheisen said the merger would allow the company to deliver triple-play services - internet, cable TV and telephone services - more efficiently. Improved cost-efficiency is expected to save the company an annual HUF 1 billion, he added.

T-Kábel has 320,000 subscribers and its unit Dél-Vonal has 3,800.

T-Kábel had total assets of HUF 20.5 billion and net assets of HUF 5.0 billion on December 31, 2008.

Dél-Vonal had total assets of HUF 162 million and net assets of HUF 115 million at the end of 2008.

Magyar Telekom had total asses of HUF 965.3 billion and net asses of HUF 358.4 billion at end-2008. (MTI-ECONEWS)