Telecom giant Vodafone has agreed on non-binding terms to sell its Hungarian unit for $1.8bn in cash. Hungarian 4iG and state-run Corvinus Zrt are the buyers in this cash deal which is to be completed by end-2022. The state will acquire a 49% stake via Corvinus while 4iG (an IT and telecommunications company that depends on state contracts) will have another 51%. Economic Development Minister Marton Nagy said, “The government plans to label the assets as strategically important”. Vodafone Hungary has a sizeable 3mn mobile customers and 738k fixed broadband customers. Vodafone’s shared services business VOIS won’t be included in the transaction and the deal will create the central European nation’s second-largest telecom operator. Vodafone CEO Nick Read said, “The Hungarian Government has a clear strategy to build a Hungarian-owned national champion in the (Information and Communications Technology) sector.” The company is looking to simplify the business with the sale of Vodafone operations in Malta, New Zealand and Qatar. It also wants to consolidate Vodafone’s presence in key markets like UK, Italy and Portugal.
Vodafone’s dollar bonds were lower with its 3.73% 2024s down 0.35 points to 100.07, yielding 3.45%.
For the full story, click here