Vodafone sells its subsidiary in Hungary for 1,759 million euros to 4iG and the Hungarian State

MADRID, 22 Ago. (EUROPA PRESS) -

The British 'teleco' Vodafone has agreed to sell its subsidiary in Hungary for 715,000 million forints (1,759 million euros) to the technology company 4iG and Corvinus, a company owned by the Hungarian State, as announced in a statement.

As specified by 4iG, the company will acquire 51% of Vodafone Magyarország Távközlési, while Corvinus will own the remaining 49%.

After the operation, 4iG expects to merge with Vodafone to be the second largest fixed and mobile telecommunications operator in the country, only behind Magyar Telekom.

The acquisition price represents a multiple of 9.1 times the gross operating result (Ebitda) for the fiscal year ended March 31, 2022.

"The Hungarian government has a clear strategy to create a state-owned national champion in the information and communication technology sector," said Vodafone CEO Nick Read.

According to the chief executive of the British firm, the merger of Vodafone Hungary with 4iG will allow the subsidiary "to play a key role in the development and future growth of the sector as a convergent and much better scaled operator."

Vodafone Hungary has 3.8 million retail and business customers, of which 3 million are mobile line customers and the remaining 800,000 are fixed line customers. Following the merger with 4iG, the joint venture will have 5 million customers.