Vodafone Likely To Receive $1.8B From Hungarian Business Sale

Vodafone Likely To Receive $1.8B From Hungarian Business Sale
  • 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.

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