4iG Nyrt., the Hungarian State and Vodafone Group have agreed heads of terms for the sale of a 100% stake in Vodafone Magyarország (Vodafone Hungary) for a total value of HUF 715 billion (EUR 1.8 billion).
4iG will control 51% stakes of the company, while the Hungarian state represented by Corvinus Zrt. could hold a 49%. This is the largest transaction in Hungary’s telecommunications market since the Matáv Group (now Magyar Telekom) was privatized in the 1990s.
The IT company 4iG has meanwhile also built up positions in the telecommunications market. The Vodafone deal aims to make the 4iG Group a national champion in the ICT sector. The buyer expects at least HUF 150 billion (EUR 367 million) in additional revenue and cost savings from the synergy effects alone.
As the second largest mobile operator in Hungary, Vodafone serves more than 3 million residental and business customers, as well as around 800,000 customers in the segment of broadband internet, cable TV and fixed communications. That means more than 5 million active contracts. A year ago, the group with 3,000 employees had a turnover of almost HUF 280 billion (EUR 686 million) and achieved an EBITDA of around HUF 95 billion (EUR 233 million).
Since 2010, the government has been pursuing the goal of acquiring Hungarian majority shares in the banking, energy and media sectors. This has already been achieved in banking, energy and in media sectors.