4iG signs deal to acquire Vodafone Hungary

Hungary’s 4iG expects to complete the acquisition of Vodafone’s local operation at the end of January having completed, via its Antenna Hungária unit, a binding sale and purchase agreement.

Antenna Hungária, Corvinus International Investment, representing the Hungarian State and Vodafone Europe have signed the binding sale and purchase agreement of 100% shares in Vodafone Vodafone Hungary.

Following the due diligence, the parties have determined the Enterprise Value of the target company at HUF660 billion, approximately 7.1 times EBITDA. 4iG will acquire a 51% indirect controlling stake and the Hungarian State will acquire a 49% indirect stake in Vodafone Hungary, the second largest telecommunications company on the Hungarian market.

The transaction is expected to close on January 31, following payment of the purchase price. JP Morgan assisted in preparing and arranging the financing, and acted as financial advisor to 4iG.

In addition to being one of the largest acquisitions in terms of volume since the transition from communism, 4iG said tht the national group created by the merger of fixed and mobile telecoms portfolios of 4iG Group and Vodafone Hungary will reopen the market and strengthen its role in offering convergent telecoms services.

Citing Umlaut’s 2022 data, 4iG said that Vodafone was the leading mobile network in Hungary in terms of voice and data reliability with 800,000 fixed line customers and three million mobile customers. With the transaction, 4iG and the Hungarian state will acquire Vodafone Hungary’s mobile frequencies, active radio transmission equipment, active antennas and cables, part of the outdoor cabinets, as well as the uplink and optical network serving the towers.

4iG Group, via its DigiMobil brand, and Vodafone combined will be the second largest player in the mobile voice and internet services market, a market leader in fixed line internet services, and market leader in the television broadcasting market. According to preliminary calculations, the companies owned by the 4iG have a total of 7.6 million revenue generating units in Hungary after the closing of the acquisition.

“The acquisition of Vodafone Hungary opens a new chapter in the Hungarian telecommunications market. It is the first info-communications group in almost 30 years that can operate as a Hungarian majority-owned convergent operator”, said Gellért Jászai, chairman of 4iG.

“The strategic cooperation between the Hungarian state and 4iG in this transaction will not only transform the market but also improve competitiveness and accelerate the digital transformation of the economy.”