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Hungary's Magyar Telekom acquires majority stake in T-Systems Hungary

Hungary's largest telco group Magyar Telekom has announced on Tuesday that it boosted its holding in T-Systems Hungary by another 2% stake to 51% and that it stepped up its strategic co-operation with T-Systems Enterprise Services.

At the end of 2006, T-Systems Hungary, the joint venture owned by T-Systems Enterprise Services and Magyar Telekom, sold production activities unrelated to Hungarian third party customers to a 100% Deutsche Telekom owned company. This streamlined the activity of the company, keeping the system integration profile targeting major Hungarian enterprises and the public sector. On 1 January, 2007, Magyar Telekom acquired an additional 2% of T-Systems Hungary for Ft 60 million, increasing its stake to 51%.

„The intention of both Parties is to further increase Magyar Telekom's share in T-Systems Hungary to 100% by the end of Q2 2007," MTel said in a statement on the website of the Budapest Stock Exchange (BÉT). Similarly to the existing T-Com and T-Mobile agreements, at the end of 2006, Magyar Telekom and T-Systems Enterprise Services concluded a strategic co-operation and license agreement providing Magyar Telekom with exclusive rights to use the brand name T-Systems in Hungary. „This strengthened co-operation will provide synergy opportunities to Magyar Telekom Group, the harmonized market approach will further improve customer relations and capitalize on the opportunities of the IT market," MTel added. (portfolio.hu)