- 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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