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Government Sells Stake in Yettel to Finance Acquisition of Budapest Airport

Hungary Today 2023.12.20.

The Hungarian state is selling its stake in mobile phone operator company Yettel Hungary. The state-owned Corvinus International Investment Ltd. has concluded agreements on the sale of its 25 percent stake in Yettel Hungary Ltd. and Yettel Real Estate Hungary Ltd., and its 20 percent stake in CETIN Hungary Ltd., the Ministry of Economic Development said in a statement. The proceeds of the transaction will be used by the state to finance the reacquisition of Budapest Airport, Világgazdaság writes.

The buyer is Dutch holding company TMT Hungary Holdco B.V., a member of the PPF Group. The valuation of the state’s shareholding and the MEIP test of the market conformity of the transaction were carried out by independent experts. The ministry highlighted that

the proceeds of the transaction will be used by the state to finance the buy-back of Budapest Airport.”

The government’s involvement in the strategically important telecoms sector will be maintained after the transaction, through a cooperation agreement with Magyar Telekom and Vodafone. Corvinus Ltd. will continue to hold a 29.5 percent stake in Vodafone Hungary, one of the market leaders, thus being able to contribute strongly and effectively to the development of the sector from an ownership perspective, according to the ministry. They stressed that Yettel’s customers will not be directly affected by the change in the ownership structure and that residential and business customers will continue to benefit from the company’s services in the same way.

As Hungary Today reported last week, Hungary wants the Qatar Investment Authority to be part of the consortium the cabinet is forming to buy and develop Budapest Airport Ltd., with plans to build a third terminal. Last week, Economic Development Minister Márton Nagy told Bloomberg that the deal was very close to being finalized, but that the signing of the agreement could be delayed until next year.

Fact

Since the beginning of September, it has been known that the government made a takeover bid for a majority stake in Budapest Airport Ltd., allegedly for 51%. The specific buyer could be a state-controlled investment company. The minority stake would go to a professional investor, reportedly France’s VINCI Airports, a major airport operator in Europe and in the region.

In October, the Ministry of Economic Development made changes to the aviation law, preparing the ground for the takeover of the company. Then, in November, the government sold its 15 percent stake in the Hungarian subsidiary of Erste Bank. At the time, Máté Lóga, State Secretary of the Ministry of Economic Development, confirmed the speculation that the government sold its stake in order to buy the airport.

The airport was valued at EUR 4.4 billion in the failed state takeover attempt in 2021, but it is not known how much it will be bought for now.

EU Approves Government Purchase of Budapest Airport
EU Approves Government Purchase of Budapest Airport

The government intends to ensure the future operation and related services of Liszt Ferenc Airport.Continue reading

Via Világgazdaság, Featured image: Facebook/Yettel.Hungary


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