Home / News / 4iGʼs T-Systems Hungary acquisition falls through

4iGʼs T-Systems Hungary acquisition falls through

Talks on the sale of T-Systems Hungary to 4iG have been terminated, T-Systems Hungary parent Magyar Telekom and 4iG said in disclosures posted on the website of the Budapest Stock Exchange late Tuesday, state news wire MTI reports.

The parties announced in July that 4iG had agreed to acquire T-Systems Hungary, a much bigger peer, for an undisclosed price. 4iG had planned to finance the acquisition by involving institutional investors and issuing bonds, in addition to taking out credit. The deal was supposed to have helped boost 4iGʼs annual revenue to HUF 200 billion-250 bln in 2-3 years.

On Tuesday, Magyar Telekom and 4iG said they decided to terminate the negotiations regarding the sale of T-Systems Hungary “following 4iGʼs initiative”.

T-Systems Hungary will continue to be a part of the Magyar Telekom group, they said.

“Magyar Telekom and 4iG intend to continue exploring cooperation opportunities with the aim of partnering in the field of services sold to the public and enterprise segments. The consortium agreements concluded earlier between the parties remain in effect with unchanged conditions,” Magyar Telekom and 4iG added. 

In a separate press release from 4iGʼs PR agent, 4iG chairman-CEO Gellért Jászai said the decision to break off the talks on the planned acquisition was “difficult but well-considered”.

“Regardless, 4iG has not given up on its plans for expansion in Hungary and the region….In addition to organic growth, 4iG will continue to actively seek acquisition targets that support its growth goals and raise shareholder value,” he added.

 In the same statement, Magyar Telekom CEO Tibor Rékasi said the telco would “further strengthen its position as market leader”, “continuing developments in line with its strategy and with strong strategic partners – among them 4iG”.

4iGʼs share price has more than doubled since the start of the year, MTI says.

Source : bbj.hu

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