660 Billion Forint Deal Signed to Buy Vodafone Hungary - Biggest Sale Since 1990
- 10 Jan 2023 8:24 AM
- Hungary Matters
Hungarian state investment company Corvinus has inked a deal to purchase a 49% stake in Vodafone Europe's Hungarian unit, while 4iG unit Antenna Hungária is acquiring a 51% stake in the telecom company, the economy development minister said.
The 660 billion forint (EUR 1.6bn) acquisition is Hungary’s biggest since 1990, Márton Nagy said in a statement.
Due diligence on Vodafone Hungary has been completed and the financial report is expected to be concluded on Jan. 31, the statement added.
“In an economic situation burdened by the war and sanctions, we must not give up on our endeavour to further strengthen Hungary’s competitiveness and independence,” Nagy said.
“It is a primary objective of the government to establish national ownership in sectors of national strategic importance such as insurance and telecommunications, in addition to the banking, energy and media sectors. Vodafone Hungary’s purchase serves this goal and will further strengthen our country’s sovereignty.”
As a result of the acquisition, a fully Hungarian-owned “national champion” will be created in the domestic telecoms sector, helping to improve Hungary’s competitiveness by meeting 21st century digital standards and providing high quality services to individuals and corporate clients, the statement said. Vodafone Hungary serves 3.8 million customers.
LMP: Govt Should Raise Teachers’ Wages Instead of State’s Vodafone Stake Purchase
The opposition LMP party has criticised the state’s purchase of a 49% stake in Vodafone Europe’s Hungarian unit, saying the government should instead be spending taxpayers’ money on increasing the wages of teachers.
Antal Csárdi, the party’s deputy group leader, told a press conference that giving teachers a 25% wage increase would cost 170 billion forints, around half the amount of the state’s 49% stake in Vodafone.
Csárdi also raised the possibility that 4iG may eventually take over the state’s stake at a discount, adding that it was doubtful that the state would secure a return on its investment.
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