The Hungarian state and 4iG PLC will establish a telecommunications super holding
Andrea Mager, Minister without Portfolio responsible for national asset management, exercising the ownership of Antenna Hungária Zrt., and 4iG PLC have entered into a cooperation agreement. The aim of the agreement is for the parties to combine public and private capital to create a strategic telecommunications and telecommunications infrastructure company that, in addition to competitive market services, gives due weight to national interests within the industry.
One of Hungary’s largest, and potentially a leading telecommunications and telecommunications infrastructure service provider company in the Central and Eastern European region may be established, due to the strategic partnership between the Hungarian state and 4iG PLC. Pursuant to the agreement announced today, it will contribute companies with a telecommunications profile owned by the capital market company to a joint venture with the state, into Antenna Hungária Zrt. With the transactions, 4iG will acquire a majority stake in Antenna Hungária Zrt. The parties are expected to decide on the contributions of companies corresponding to the profile of the national telecommunications company, after the finalization of the preliminary agreements, the due diligence of AH Zrt., and the valuation of the assets which is to happen in mid-October 2021.
“The strategic partnership agreement concluded with the Hungarian state is a significant economic historical moment of the Hungarian telecommunications market, from which we will soon establish one of the leading telecommunications holding companies in the Central and Eastern European region with the cooperation of the state and private capital.” - emphasized Gellért Jászai, President and CEO of 4iG PLC - “The acquisition of the majority stake in Antenna Hungária and the combination of the two companies' telecommunications portfolios, expertise, and know-how will contribute to the technological development of the Hungarian telecommunications sector and the provision of competitive and high-quality services in the business and retail segments.” - added the President and CEO.
“Based on the consolidation processes in the market, we are convinced that the integrated telecommunications company established jointly with 4iG PLC - of which the MVM NET transaction announced in early August also plays an important part - a key player can be created in the domestic and even regional telecommunications market, which, with its services and infrastructure, can compete with international and multinational companies as well.” – said Zsolt Sárecz, President and CEO of Antenna Hungária Zrt. - “With regard to the retail and business services provided by Antenna Hungária, we are fighting for customers in an intensively competitive market. For our company, working with 4iG offers the opportunity for long-term development and market success, which ensures an expanded range of solutions that would serve a wider range of residential, business, and governmental needs.” said the President and CEO.
Antenna Hungária has been a key 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. Antenna Hungária has a 25 percent stake in Telenor Hungary (Telenor Hungary and Telenor Real Estate, CETIN Hungary), and after closing the ongoing acquisition, it will also own MVM NET Zrt., which owns and operates government telecommunications infrastructures. The state-owned company is also present with significant services in the field of event organization production, program production, program distribution, satellite communications, telecommunications, and its IT related services. As one of the most successful Hungarian-owned information technology companies, AH Zrt. continuously builds its own networks, solutions, and services, owning a serious infrastructure.
4iG PLC is one of the largest players in the Hungarian IT and ICT market, as well as one of the leading groups in Hungary's knowledge-based digital economy. 4iG has been present in the field of industry- and industry-independent innovative technologies for more than 25 years. The Group is also constantly expanding its interests and services in the field of telecommunications and satellite communications (CarpathiaSat, Hungaro DigiTel). In the spring of this year, 4iG announced a joint expansion strategy with Antenna Hungária, as well as major Hungarian and international acquisitions. With the successful completion of these acquisitions addition to IT, 4iG can soon become one of the key players in the telecommunications industry. In 4iG’s telecommunications portfolio, the range of companies affected by the contribution will be determined by, among other things, the results of ongoing acquisitions and the valuation of the assets of Antenna Hungária Zrt.
Budapest, 25th August 2021