MTel shareholders rubber stamp deal to merge cable unit

Shareholders of Hungarian telecoms operator Magyar Telekom (MTel) approved a plan to merge its cable TV unit T-Kabel into the parent company at an EGM held on Monday. Shareholders with 64.57% of voting rights attended the meeting. As a result of the proposal, MTel’s T-Kabel division and its 100%-owned Del-Vonal will be merged into MTel; the parent company holds a 16.4% direct stake in T-Kabel and an indirect 83.6% holding via its wholly-owned unit Investel. Commenting on the merger plan, MTel chief executive Christopher Mattheisen said that going forward, the company would be able to deliver triple-play services – internet, cable TV and telephony – more efficiently. Moreover, the improved cost-efficiencies afforded by the plan will save the group an estimated HUF1 billion (USD5.08 million) per annum, he said. T-Kabel had 320,000 subscribers, total assets of HUF20.5 billion and net assets of HUF5 billion as at 31 December 2008, while Del-Vonal has 3,800 subscribers, total assets of HUF162 million and net assets of HUF115 million.