Gov't Declares Vodafone Acquisition of Nat'l Strategic Importance

Government

Image by Shutterstock.com

The government has declared Antenna Hungaria's acquisition of a controlling stake in Vodafone Hungary of "national strategic importance", thus exempting the deal from the scrutiny of the competition authority, in a decree published in official gazette Magyar Közlöny.

The measure was taken "in the interest of the security of provision of telecommunications in Hungary", according to the decree.

On Monday, Antenna Hungária, which is owned by listed ICT company 4iG, and state-owned Corvinus entered into a final sale and purchase agreement with Vodafone Europe to acquire 100% of Vodafone Hungary for HUF 660 billion. The acquisition is expected to close on January 31, giving 4iG an indirect 51% stake in Vodafone Hungary and the state of Hungary an indirect 49% stake.

Antenna Hungária has taken out a loan from the Hungarian Development Bank (MFB) and other lenders to finance the acquisition.

In a statement issued earlier this week, Economic Development Minister Márton Nagy said the government has made it a "priority goal" to boost domestic ownership in strategic sectors, such as the insurance and telecommunications sectors, over the 50% threshold, as has happened in the banking, energy and media sectors.

"The acquisition of Vodafone Hungary serves this purpose and will further strengthen Hungary's sovereignty," he added.

Policymakers Cut Central Bank Base Rate by 50 bp to 7.75% MNB

Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%

Bulgaria's Household Income, Spending Rise 20% in 2023 World

Bulgaria's Household Income, Spending Rise 20% in 2023

Spar Magyarország Revenue Climbs Close to 16% in 2023 Retail

Spar Magyarország Revenue Climbs Close to 16% in 2023

Hungary Launches HUF 15 bln Tourism Sector Support Program Tourism

Hungary Launches HUF 15 bln Tourism Sector Support Program

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.