Vodafone Hungary acquired by Hungarian state and Hungarian ICT-giant 4iG

Vodafone Europe BV, Corvinus Nemzetközi Befektetési Zrt, and Antenna Hungária Zrt., a subsidiary of 4iG Nyrt have signed an agreement on the acquisition of Vodafone Hungary Távközlési Zrt., Minister of Economic Development Márton Nagy told MTI on Monday.

The transaction, worth HUF 660 billion, will give Antenna Hungária a 51 percent stake, while Corvinus Zrt., acting on behalf of the Hungarian state will acquire a 49 percent indirect stake in the second biggest Hungarian telecommunications company purchased from Vodafone Europe BV. This is the biggest corporate acquisition in the period since the system change occurred in Hungary in 1989-1990. The due diligence of Vodafone Hungary has been completed and the transaction is expected to be financially closed by 31 January.

"Establishing majority national ownership in sectors of strategic national importance such as insurance and telecommunications, following the banking, energy and media sectors is a top priority for the government. This is the purpose of the acquisition of Vodafone Hungary, which will further strengthen the sovereignty of our country," Márton Nagy said in his statement.

Vodafone Hungary is the second biggest player in the Hungarian telecoms market, providing mobile, TV, broadband internet and fixed phone services to more than 3.8 million residential and business subscribers, and employs more than 3,000 people, the company said.

That the transaction would close soon was made clear by the news on Sunday that the state had approved a €425 million loan from MFB (Hungarian Development Bank) for 4iG's acquisition of Vodafone. The credit worth 170 billion forints was secured by a state surety for 80 percent of the equity requirement for 4iG's stock exchange-listed subsidiary, which is closely connected to NER (The System of National Cooperation – the network of political and cultural institutions and private corporations closely aligned with Prime Minister Viktor Orbán or with the national-conservative Fidesz party).

4iG and the Hungarian state announced their joint acquisition of Vodafone Hungary in August last year. The acquisition required both parties to raise roughly €800 million.

Vodafone issued the following statement on the transaction: “Vodafone Hungary cannot provide any further information on the transaction. It is important to stress, however, that Vodafone Hungary's business operations are uninterrupted and ongoing, and its services are fully operational and of the usual high quality. The operator remains committed to providing an excellent customer experience and to the digital development of Hungary.”