Vodafone agrees $1.8bn sale of Hungary unit

Vodafone agrees $1.8bn sale of Hungary unit

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Vodafone has agreed to sell its Hungarian business in a deal worth US$1.8 billion, the company announced today.

The British firm said it had signed a non-binding agreement with 4iG and state-run Corvinus Zrt.

The transaction is expected to close by the end of the year with 4iG becoming the majority owner of the company with 51% and the Hungarian State holding 49%.

Nick Read, chief executive of Vodafone said: “The Hungarian Government has a clear strategy to build a Hungarian owned national champion in the ICT sector.

“This combination with 4iG will allow Vodafone Hungary, which has a proud history of success and innovation in the country, to play a major role in the future growth and development of the sector as a much stronger scaled and fully converged operator.

“The combined entity will increase competition and have greater access to investment to further the digitalisation of Hungary.”

Vodafone Hungary is the second largest player in the Hungarian telecoms market in terms of shares and subscriptions, serving more than 3.8 million residents and businesses.

Though, Vodafone noted that its shared services in Hungary – VOIS, are not included in the deal and will continue to offer its services to Vodafone’s other operating companies.