WOOD Flash – 4iG: intends to buy Vodafone Hungary jointly with the Hungarian State
This morning (22 August), 4iG announced that the company, together with the Hungarian State, represented by Corvinus Zrt., has entered into non-binding heads of terms with the Vodafone Group to acquire a 100% stake in Vodafone Magyarorszag Tavkozlesi Zrt. for HUF 715bn in cash. With the acquisition, 4iG will become the majority owner of 51% of Vodafone, while the Hungarian State will have a 49% stake. We see this news as positive: we believe Vodafone Hungary poses a good match for the 4iG’s remaining business and creates significant cross-selling synergies (the company estimates the total value of the potential synergies at HUF 150bn) for the newly-created convergent telecom. In the face of this, we see the transaction as value accretive for 4iG, even though the price does not seem especially attractive for a mobile operator. The implied transaction EV/EBITDA of the deal is 7.7x, while we note that similar deals in the CEE region have been concluded in a range of 6-7x: Telenor was acquired by PPF for 6.4x in 2018; and Play was acquired by Iliad in 2020 for 6.8x.4iG Nyrt. 4iG Nyrt, formerly Freesoft Szoftverfejleszto es Szamitatechnikai Szolgaltato Nyrt is a Hungary-based company engaged in providing software products and consultancy. The Company's activities include development and implementation of specific, custom-made software systems, document management, knowledge management, portal and collaboration applications, complex services for business needs in the areas of implementation, support and consultation, intranet- and Internet-based development, services, graphical and creative design, and consultation, design, development and implementation of mobile business applications, as well as operation, support, outsourcing, application service provision (ASP), application portfolio management (APM), hosting and other services. The Company has three subsidiaries: Axis Consuling 2000 Kft, BankSoft Kft and HUMANsoft Kft.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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