Hungary acquires indirect minority stake in Yettel

State-owned Corvinus Nemzetkozi Befektetesi has acquired an indirect minority stake in mobile telco Yettel through a share swap deal with Antenna Hungaria, a unit of listed IT company 4iG, the economic development ministry said on Monday.

The transaction further increases the state’s share and role in the “strategically important telecommunications sector” and gives it a minority stake in two of the sector’s leading players, the ministry said in a statement.

In addition to further diversifying the state’s investment portfolio in the telecommunications sector, the transaction “enables it, as an owner, to contribute more strongly and efficiently to the development of the sector … ensuring further advantages to subscribers, the performance of the Hungarian economy and the country’s competitiveness”, it added.

4iG said in a statement that Antenna Hungaria had raised its stake in Vodafone Magyarorszag to 70.5 percent after acquiring a 19.5 percent stake in Vodafone Hungaria from Corvinus in a swap for 25 percent of the subsidiaries of PPF Telecom Group: Yettel Magyarorszag, Yettel Real Estate and CETIN Hungary.

As a result of the transaction, Corvinus’s stake in Vodafone Magyarorszag was reduced to 29.5 percent.

4iG said Vodafone Magyarorszag’s board will be expanded to seven members from five at present. Representatives of Antenna Hungaria will sit in five of the seats.

Antenna Hungaria and Corvinus closed the acquisition of Vodafone Hungary for a consideration of 660 billion forints (EUR 1.7bn) in January.

The economic development ministry said the deal would have no direct impact on Vodafone Magyarorszag or Yettel Magyarorszag clients.

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