4iG on the telecoms market: the acquisition of Hungaro DigiTel is completed
Private placement of share capital coming to the capital market company
Following the approval of the Hungarian Competition Authority (HCA), the multi-stage process has been completed, as a result of which 4iG Plc. indirectly acquired a 75% majority stake in Hungaro DigiTel (HDT) Ltd., one of the region’s leading satellite telecommunications operators. As previously announced, Antenna Hungária Plc. reduced its stake in the target company to 25%, while Bartolomeu Investments Ltd., managed by Alpac Capital, contributed 100% of its portfolio company Portuguese Telecommunication Investments Ltd. to 4iG Plc. The consideration for the contribution will be settled through a private placement of capital increase by share premium, the details of which were disclosed by 4iG Plc. following today’s announcement.
With the approval of the HCA, 4iG Plc. has closed the series of transactions aimed at the acquisition of a 75% stake in Hungaro DigiTel Ltd., the capital market company announced on the website of the Budapest Stock Exchange. In the past period, the target company was due diligenced and valued in order to acquire the majority stake in HDT Ltd. Furthermore, a sale and purchase agreement was drafted concerning the stake in Antenna Hungária Plc. as well as a share purchase agreement between 4iG Plc. and Bartolomeu Investments Ltd., managed by Alpac Capital SA, which has an international background. Bartolomeu Invest owns Portuguese Telecommunication Investments (PTI) Ltd., a shareholder in Hungaro DigiTel, through which Bartolomeu Investments becomes a shareholder of 4iG Plc., and the capital market company becomes an indirect 75% shareholder of Hungaro DigiTel Ltd.
Based on the expert report of PwC Hungary on the valuation of the business share of PTI Ltd., the parties have determined the value of the contribution of PTI Ltd. at HUF 3,156,000,126, which will be settled by 4iG Plc. by issuing 5,207,921 4iG shares with a nominal value of HUF 20 and an issue value of HUF 606. With the share issue, Bartolomeu Investments will acquire a 5.24 percent stake in 4iG Plc. The company has committed not to sell the 4iG shares it acquires in the share capital increase for a period of 1 year from the date of admission to trading on the stock exchange.
With Hungaro DigiTel’s majority stake and further planned acquisitions, 4iG could become one of the leading players in the telecommunications industry in Hungary. The acquisition of HDT will provide synergistic support for the company’s development and a strong basis for regional expansion. One of the strategic growth areas for 4iG is the telecoms and telecoms infrastructure segment, which can increase the company’s share of recurring revenues thanks to well-planned, long-term contracts.
Budapest, 01 June 2021
communications and marketing manager
E-mail: sajto (@) 4ig.hu