PRESS RELEASE
4iG HAS UNIFIED ITS TELECOMMUNICATIONS PORTFOLIO WITH ANTENNA HUNGARIA
THE SECOND LARGEST TELECOMMUNICATIONS GROUP IN HUNGARY WITH SIGNIFICANT POSITION IN THE REGION HAS BEEN CREATED
4iG Plc has implemented a second capital increase in Antenna Hungária Zrt., whereby the capital market company increased its stake in the telecommunications group to 76.78 percent. The transaction of HUF 132 billion was completed by 4iG through the contribution of the majority stakes in two Albanian telecommunications companies, ALBtelecom and One Telecommunications. The transaction was registered by the Court of Registration therefore completed the main strategic steps for the creation of a national telecommunications group, resulting in a corporation with a significant infrastructure and service portfolio in the domestic and international telecommunications market.
4iG Plc (4iG) announced on the
website of the Budapest Stock Exchange that it contributed its indirect stakes
of 80.27 percent in ALBtelecom and 99.8 percent in One Telecommunications to
Antenna Hungária, raising capital of HUF 132 billion in the company. As a
result of the transaction, 4iG holds 76.78 percent stake in Antenna Hungária
Zrt., and the Hungarian state has a 23.22 percent stake therein.
Last
August, 4iG agreed with the Hungarian state to create a national telecommunications
group by merging the telecommunication portfolio of the capital market company
with Antenna Hungária. The aim of the participants was to create a group of
companies by the transaction that, thanks to its size, efficiency and
infrastructure, can provide competitive services in the domestic and regional
telecommunications markets.
According
to the agreement, 4iG has contributed its entire telecoms portfolio to Antenna
Hungária by the beginning of April 2022. As a result of the dual phased capital increase a worth total of HUF 534 billion, Antenna
Hungária became the owner of following telecommunications companies: Hungarian
DIGI Group (DIGI Távközlési és
Szolgáltató Kft., Invitel Zrt., DIGI Infrastruktúra Zrt., i-TV Zrt.), Invitech ICT Kft, as well as
Montenegrin mobile operator ONE Crna
Gora, Albanian 4P (broadband internet, tv, voice and mobile) provider ALBtelecom and Albanian mobile operator
ONE Telecommunications. The transaction created the second
largest telecommunications group in Hungary with a significant portfolio of
fixed voice, internet and TV, as well as broadcasting and mobile services in
the region and the Western Balkans.
“The acquisitions accomplished over the past year have completed the process of transformation that resulted in 4iG Plc evolving from an IT systems integrator company into an international info-communications group providing a wide range of telecommunications and IT services", said Gellért Jászai, Chairman-CEO of 4iG Plc. “In the coming period, we will seek to leverage synergies and collaborations between our companies and we will continue to explore acquisition opportunities to increase the market share of the Group. In 2022 we strive to enter the B2C segment with our telecommunications services under a single brand name and with a new strategy, not only in Hungary but also in the Western Balkans region”, stressed Gellért Jászai, Chairman-CEO of 4iG Plc.
As a pre-condition of the transaction, the
parties relied on the evaluations of PwC Hungary and DLA Piper to determine the
value of Antenna Hungária and the value of the companies involved in the
capital increase. The MEIP (Market Economy Investor Principle) test* related to
the transaction was also conducted by legal advisory firm DLA Piper.
According to the agreement concluded between
the Hungarian State and 4iG in August 2021, 4iG has the possibility to further
increase its capital and acquire up to 80% stake in Antenna Hungária.
-end-
Background information
4iG Plc
The Budapest-based 4iG Plc isHungary’s
leading IT systems integrator with significant interests in the domestic and
regional telecommunications markets. The company has been present in the market
for innovative industry-independent IT technologies for more than 27 years. The
company is continuously expanding its services and portfolio to meet the
changing needs and demands of the info-communications market. The Group employs
more than 6,900 people. 4iG is a broad-spectrum solutions provider with
significant interests in IT, telecommunications, satellite telecommunications
and telecommunications infrastructure development.
The company,
listed on the Budapest Stock Exchange, aims to build a dominant market position
in a wide range of info-communication services in Hungary, Central Eastern
Europe and the Western Balkans. www.4ig.hu
Antenna Hungária
Antenna Hungária has been a major player in the Hungarian
telecommunications sector for decades. The company is the exclusive provider of
national digital terrestrial television and analogue radio broadcasting in
Hungary. The company owns 25 percent of Yettel Hungary (Yettel Hungary and Yettel
Real Estate, CETIN Hungary) and, following the completion of the ongoing
acquisition, will also own AH NET Zrt., which has and operates the government
telecommunications infrastructure. The state-owned company is also active in
the fields of event management, broadcasting, telecommunications, satellite
communications and IT services related to telecommunications. AH Zrt. is one of
the most successful information technology companies in Hungary and is
continuously building up its own networks, solutions and services, thus having
a substantial infrastructure of its own. www.ahrt.hu
*MEIP Test
The Market Economy Investor Principle, or MEIP, is the cornerstone of
state aid regulation. It helps to determine whether the activities of public
sector operators qualify as State aid in accordance with Article 87(1) of the
Treaty of Rome. The essence of the principle is that when a public actor
(public body) invests in a company or an undertaking, the investment or contribution
cannot qualify as disguised State aid from the point of view of the European
Union. The MEIP test demonstrates from a legal and financial point of view that
the State carries out a transaction on the same terms as private operators,
i.e. it reacts to a situation in the same way as market operators would.