Newbury’s Vodafone sells Hungary arm for €1.7bn

Vodafone, the Newbury-based telecoms giant, is set to sell its Hungary subsidiary, Vodafone Hungary, for €1.7 billion in cash.

The company has been sold to Hungarian IT service management firm 4iG and financial institution Corvinus, becoming the clear second place operator in the European country and working towards the Hungarian government’s goal of creating a national information and communications technology champion.

Margherita Della Valle, Vodafone Group’s interim Chief Executive, said: “This combination establishes a scaled converged operator across mobile and fixed communications and supports the Hungarian government’s goal of creating a national Information and Communications Technology champion.”

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The transaction is still subject to customary conditions and is expected to complete this month (January). Vodafone intends to use the funds generated to pay off debt.

When the proposal was initially announced in August of last year, Vodafone’s then-CEO, Nick Read, said: “The Hungarian Government has a clear strategy to build a Hungarian owned national champion in the ICT sector.

“This combination with 4iG will allow Vodafone Hungary, which has a proud history of success and innovation in the country, to play a major role in the future growth and development of the sector as a much stronger scaled and fully converged operator.

“The combined entity will increase competition and have greater access to investment to further the digitalisation of Hungary."

The sales comes around a week after the rumoured frontrunner for the Vodafone chief executive position criticised the industry for being too "bureaucratic [...] centralised and complex".

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