Btel raises its capital by HUF 950 mln, plans withdraw


Hungary-based Business Telecom (Btel) announced it will be raising its capital by HUF 950 mln, up to approximately HUF 2 bln, as the new priority shares give priority voting rights with veto power, priority for dividend and the option to name managers, and pre-emptive buy-out right to their owner, SkillInvest Ltd, represented by its manager, Russian businessman Timur Rakhimkulov, Btel said on the web site of the Budapest Stock Exchange (BSE). 

BTel announced two months ago that Rakhimkulov would inject the HUF 950 mln in the company through a series of private placements in the coming six months pending the decision of the management board which was taken upon authorization of an EGM of Btel on December 30, 2014.

According to reports, the EGM authorized the management board to raise the company’s capital to more than HUF 3 bln, while the troubled telecommunications company Btel was placed under interim management early in December, a month after it announced the plan of the capital increase. The Hungarian unit of telecoms giant Deutsche Telekom, Magyar Telekom, is suing BTel for HUF 944 mln in unpaid bills, and a subscriber of the company's corporate bonds has launched a liquidation procedure against it.

In addition, Btel expressed intentions to gradually withdraw from the market of telecom service providers, with selling its customer base and network elements and will focus instead on the franchise distribution of its Xprime services — which developed by Btel this year, is a patented operation model for telecom companies that merges online advertisement with traditional telecom services, to be sold on a franchise basis. In line with BTel’s reports, negotiations on the sale of franchise rights are in an advanced stage with both domestic and foreign telecoms.


Consumer price levels below EU avg in 2020 Analysis

Consumer price levels below EU avg in 2020

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Breast cancer screening at Dr. Rose Private Hospital Interview

Breast cancer screening at Dr. Rose Private Hospital

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


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.