Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2022 08 22T132136Z 4 LYNXMPEI7L04S RTROPTP 4 VODAFONE GROUP RESULTS | Business Express

Orban tightens hold over telco sector as Vodafone sells Hungarian unit

LONDON/BUDAPEST (Reuters) – Britain’s Vodafone will sell its Hungarian business for 715 billion forints ($1.8 billion) in cash to local IT company 4iG and the Hungarian state, consolidating the hold of Prime Minister Viktor Orban’s government over the telecoms sector.

Orban, in power since 2010, has expanded his nationalist government’s influence in areas such as energy, banking and the media, which it considers strategic, and long harboured plans to tighten its grip over the telecoms sector.

The deal — which does not include Vodafone’s shared services business VOIS — is expected to create Hungary’s second largest telecoms operator. 4iG will hold a majority 51% stake while the Hungarian state will hold 49%.

“The combination of 4iG and Vodafone is a significant step towards building a Hungarian owned national champion in the (Information and Communications Technology) sector,” 4iG said in a statement on Monday.

The British mobile phone and broadband group said it had agreed non-binding terms with the buyers, 4iG and state-run Corvinus Zrt.

Minister for Economic Development Marton Nagy in a statement noted the government’s prior successes with boosting ownership in other strategically important sectors.

“Now there is a chance for a Hungarian company, with a state ownership stake, to become a significant player in the telecoms market as well,” he said.

4iG has grown exponentially in recent years, becoming the dominant ICT group in Hungary through acquisitions, lucrative state contracts and growing its existing operations.

CEO and largest shareholder Gellert Jaszai told Reuters in 2019 that 4iG planned to grow through debt-fuelled acquisitions in Central Europe.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Businessmen close to Hungary’s ruling Fidesz party have come to dominate several industries as the government, which was re-elected for a fourth consecutive term in April, expands its direct involvement in a number of key sectors.

“The Hungarian Government has a clear strategy to build a Hungarian owned national champion in the (Information and Communications Technology) sector,” Vodafone Chief Executive Nick Read said in a statement.

The sale is expected to be completed by the end of 2022.

4iG shares jumped 9.25% on Monday to trade at 850 forints on the Budapest bourse at 0843 GMT.

($1 = 404.0500 forints)

 

(Reporting by Pushkala Aripaka in Bengaluru and Sachin Ravikumar in London; Additional reporting by Krisztina Than; Editing by Rashmi Aich and Kirsten Donovan)

 

Recent Post: