The state paid EUR 425 million for 49 percent of Vodafone Hungary and guarantees 4iG’s EUR 425 million loan
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46 percent
Featured image: Vodafone
As previously predicted, no matter how tight the budget is, the Hungarian state will somehow raise its share for the minority ownership of the telecommunications company.
When teachers have been protesting for many months, they go on strike so that in addition to the necessary reform of education also receive a normal salaryand the government ties all this to the transfer of EU funds due to budgetary problems, The purchase of Vodafone Hungary by the state is very thought-provoking. There is a separate fee for that…
On the one hand the Hungarian pays a minimum of 850 million euros for the minority ownership of the telecommunications company, i.e. 49 percent – there was no doubt that no matter how tight the budget was, the Hungarian state would raise its share somehow – and then the Hungarian Development Bank (MFB) also approved a credit line of 425 million euros, i.e. almost HUF 170 billion, for 4iG. it’s over he also undertook a guarantee for 80 percent of the capital claim. All this can be read in the Magyar Közlöny published on Sunday in the latest government decision.
THE Telex he wrote 4iG will acquire a 51 percent ownership share in the company, but for a long time it was a question of how the indebted 4iG group would obtain additional financing. Well, we now know the answer, the state has solved all this, after all the private market is reluctant to take risks in such a case, because Vodafone’s Hungarian company will generate forint revenues, the foreign currency loan would be risky.
In other words, based on the division of roles between public and private companies, the state will be in the minority, while the private sector will be in the majorityon the other hand most of the risks are borne by the statein that, the private side remains elegantly in the “minority”.
The MFB provides the credit line for the purchase of 51 percent of Vodafone Hungary’s ownership share to 4iG’s subsidiary, Antenna Hungária. This means that the majority-owned company of 4iG will also participate in the transaction, which has not yet been discussed wrote the Portfolio. According to the newspaper, the acquisition of Vodafone Hungary can be completed within days. The total purchase price is 1.7 billion euros, or HUF 715 billion at the current exchange rate.