Orbán and Read discussed Vodafone's plans, the PM's press chief said in a statement.Continue reading
On Monday, Minister of Economic Development Márton Nagy announced the intention to buy a minority stake in Vodafone Hungary, part of the telecommunications giant Vodafone Group, adding that the increase in Hungarian ownership in the banking, energy, and media sectors had already been achieved, and now there was an opportunity for a Hungarian company with state ownership to become a major player in the telecommunications market.
According to the statement, the Minister of Economic Development, who exercises the ownership rights, has asked Corvinus Zrt. to buy a minority stake of 49 percent in Vodafone Hungary Telecommunications Zrt. As a first step, a preliminary non-binding agreement was concluded between Corvinus Zrt. representing the government, Vodafone Europe BV, and 4iG Nyrt, a Budapest-based IT service company.
The Minister assessed the transaction as being of national strategic importance and proposed that the Government make a decision regarding the deal.
Shortly after Márton Nagy’s announcement, Vodafone Group announced that an agreement had been reached with 4iG Nyrt. and Corvinus Zrt. to acquire Vodafone Hungary Telecommunications Zrt. for a total of HUF 715 billion (EUR 1.8 billion). As a result, the Hungarian state represented by Corvinus Zrt. could hold a 49 percent stake in the company, while 4iG will control 51 percent.
The merger with 4iG will create the second-largest mobile and fixed communications company in the country,
the company said in the statement. It will go toward the government’s strategy of creating a “national champion in the ICT sector,” Vodafone Chief Executive Officer Nick Read said.
Featured photo: MTI/Kovács Attila