Vodafone sells Hungarian branch for 1.8 billion
2023.01.09 02:39
Vodafone sells Hungarian branch for 1.8 billion
Budrigannews.com – Vodafone, a British telecom company (NASDAQ:) declared that it had reached an agreement to sell its Hungarian business to the Hungarian government, local IT company 4iG, and a total cash consideration of 1.82 billion euros from the transaction.
The sale, which was first made public in August, comes at a time when Vodafone is looking for a new chief executive. The board became dissatisfied with Nick Read’s progress because he failed to grow the company or make the right deals to consolidate the fragmented European telecoms market.
On Monday, Vodafone stated that the sale’s proceeds would be used to reduce debt. In order to concentrate on its core operations in Europe and Africa, Vodafone, once one of the world’s largest mobile operators, has been selling assets.
Margherita Della Valle, interim CEO of the company, stated in a statement that the Hungarian acquisition would accelerate competition in Hungary and increase competition.
Through the agreement, Prime Minister Viktor Orban of Hungary will strengthen his control over the telecoms industry. 4iG will own 51% of the company under the plan, while the Hungarian government will hold 49%.
He has increased the power of his nationalist government in energy, banking, the media, and now telecoms.
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