Hungarian alternative operator Hungarian Telephone and Cable Corp (HTCC) has announced the successful completion of its purchase of Tele2 Hungary from the unit’s Swedish parent. The purchase price for Tele2 Hungary was paid in cash and is based on an enterprise value of EUR4 million (USD5.7 million), which will be adjusted for the net debt and net working capital levels of Tele2 Hungary as of the completion of the transaction. HTCC, which provides telecoms services under the Invitel brand, agreed to purchase Tele2’s Hungarian business in July 2007. The acquisition has now been approved by the Hungarian Competition Office.
In a press statement yesterday, HTCC said it would now serve over a million mass market customers in Hungary, giving it a large customer base on which to expand its services – particularly DSL broadband. In the short term, Tele2 Hungary will continue to operate as a standalone business using the Tele2 brand name. However, going forward the unit will be integrated into the parent company under the Invitel brand name. Tele2 Hungary recorded HUF10.7 billion (approximately USD61 million) in revenue in 2006.
Commenting on the completion of the acquisition, HTCC President and CEO Martin Lea said, ‘We are very pleased to announce the completion of the acquisition of Tele2 Hungary which will further develop our position in the fixed line telecoms market in Hungary. The acquisition is in line with our strategy to pursue ‘bolt on’ acquisitions in the Hungarian and Romanian telecoms markets which add value for Hungarian Telephone’s stockholders.’