Vodafone Likely To Receive $1.8B From Hungarian Business Sale - Vodafone Group (NASDAQ:VOD)

Vodafone Group Plc VOD agreed to receive cash consideration of €1.7 billion ($1.82 billion) from the sale of its Hungarian business to local IT company 4iG and the Hungarian state.
The disposal, first divulged in August, coincided with Vodafone hunting a new CEO after Nick Read's growth and deal strategies to consolidate a fragmented European telecoms market failed to impress the board, Reuters reports.
The sale proceeds will help to repay Vodafone's debt.
Under Read, Vodafone, once a leading mobile operator, sold assets to focus on its core European and African operations.
Vodafone interim CEO Margherita Della Valle stated that the Hungarian disposal would increase competition and drive competition in Hungary.
In Hungary, Prime Minister Viktor Orban will consolidate his hold over the telecoms sector through the deal, the report adds.
Under the plan, 4iG will hold a majority 51% stake while the Hungarian state will own 49%.
The sale will likely close later this January.
Vodafone reported first-half FY23 revenue growth of 2% year-on-year to €22.93 billion, driven by service revenue growth and higher equipment sales.
Group service revenue grew 2.5% Y/Y to €19.21 billion on an organic basis.
Price Action: VOD shares traded lower by 0.28% at $10.72 in the premarket on the last check Monday.