16 January 2023

Vodafone agrees to sell Hungarian unit for USD 1.8 billion

Vodafone Group sold its Hungarian business Vodafone Hungary to a consortium of 4iG PLC and Hungarian state holding company Corvinus for EUR 1.7 billion. 4iG will own 51% of the consortium and the Hungarian government 49%.

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Vodafone Hungary had a net turnover of USD 681 million in 2021, employs more than 3,000 people and is the second largest telecommunications company in Hungary (after Magyar Telekom). According to 4iG's chairman, Vodafone Hungary has a significant fixed line infrastructure and customer base, which should provide 4iG with great synergies and market dominance.

Vodafone said that the proceeds from the sale will be used to partially repay debt. The company still plans to sell assets to focus on its core operations in Europe and Africa.

Another example of this new Vodafone strategy is the transaction from last November, when the firm sold part of its Vantage Towers unit, forming a new joint venture with KKR and Global Infrastructure Partners (GIP).

The transaction, which values the tower unit at US$16.1 billion, brings the operator a minimum net cash proceeds of US$3.2 billion. The transaction is subject to regulatory approvals and is expected to be completed in the first half of 2023.

"The telecommunications industry in Europe is undergoing a transformation, with major players focusing on specific markets, divesting, and investing in new technologies such as 5G to increase returns."

- Jan Kudlak, TMT Deloitte Leader