Vodafone Sells its Hungarian Subsidiary for 1.759 Billion Euros
Vodafone is selling its Hungarian subsidiary, which will merge with 4iG, a state-owned operator, making it the second largest national operator.
Vodafone has disposed of its Hungarian subsidiary, Vodafone Magyarország Távközlési, having sold it for EUR1.759 billion. The buyers were 4iG, which acquired 51% of the Hungarian subsidiary, while the remaining 49% is held by Corvinus, a company owned by the Hungarian state,
Following this transaction, 4iG intends to merge with Vodafone to become the second largest fixed and mobile telecommunications operator, behind only the country’s largest operator, Magyar Telekom.
In this regard, Nick Read, CEO of Vodafone, stated that the Hungarian state’s strategy is to create a dominant and benchmark operator in the ICT sector that is state-owned. In this way, the merger of 4iG with Hungary will allow it to play a key role in the future development and growth of the sector by becoming a convergent and better scaled operator.
Vodafone Magyarország Távközlési currently has 3.8 million retail and business customers, of which 3 million are mobile lines and 800,000 fixed lines. Once merged with 4iG, the resulting operator will have 5 million customers.