The British telephony group Vodafone has reached an agreement to sell its subsidiary in Hungary to the computer group 4iG as well as to Corvinus Zrt, a Hungarian public holding company, for 1.8 billion euros (1.73 billion francs during the day) in cash.
“This represents more than nine times the adjusted operating profit for the twelve months ended March 31,” Vodafone said in a statement, adding that a merger with 4iG will make its Hungarian subsidiary the number 2 in mobile telephony and country fixed.
Vodafone claims that its Hungarian branch is ‘complementary’ to 4iG with few areas where their activities are similar.
‘The Hungarian government has a clear strategy to build a public national champion’ in the telecommunications and digital sector, notes Vodafone chief executive Nick Read, adding that ‘the combined entity will increase competition and access to investment for Hungary’s digital future’.
The transaction must still be validated by the authorities concerned and the shareholders, and the operation should be completed by the end of 2022, projects Vodafone.
The telecom operator, one of the heavyweights in Europe, has been carrying out a restructuring for several years which has led it to refocus on Europe and Africa, following undertaking a savings program and listing on the stock market in Frankfurt its subsidiary Vantage Towers.
Vodafone had published a slight increase in turnover for its staggered first quarter at the end of July, with a drop in its income in Germany, its largest market, offset by an increase in the United Kingdom driven in particular by inflation.
The action took 0.46% to 1222.30 pence at the opening of the London Stock Exchange.
/ATS