PPF in talks to sell Telenor Montenegro to 4iG

12 Jul 2021

Hungarian technology company 4iG has signed a preliminary non-binding agreement with PPF Telecom Group to acquire a 100% stake in Telenor Montenegro, the country’s third largest mobile network operator (MNO) by subscribers. 4iG will now begin due diligence and may make a final acquisition offer in late September. The parties have agreed that the transaction will be completed by 30 November 2021 at the latest, subject to regulatory approval.

‘The acquisition of Telenor Montenegro is in line with 4iG’s regional expansion strategy, and the company’s stable background and market position, as well as its strong revenue-generating capacity, can provide high added value for our group,’ 4iG President and CEO Gellert Jaszai said in a press release, adding: ‘We see significant growth potential in the Western Balkans region, and we expect the economic growth of the region to be significantly boosted by the enlargement of the European Union in the next five years. Therefore, in addition to the acquisition just announced, we would like to further increase our presence in the region. To this end, we are constantly exploring investment opportunities in the telecommunications and IT sectors.’

Telenor Montenegro claimed 332,884 subscribers at 31 March 2021 and operates an LTE network covering 98% of the population. Private investment company PPF Group acquired Telenor’s assets in Montenegro, Hungary, Bulgaria and Serbia in 2018 in a deal valued at USD3.3 billion.

Note that in its home country, 4iG struck a non-binding agreement to acquire 100% of fixed and mobile operator DIGI Hungary in late-March 2021, a deal it aims to complete by September. Furthermore, at the start of June 4iG bought a 75% stake in satellite operator Hungaro DigiTel, and later that month it entered into a preliminary agreement to buy a 51% stake in another international satellite provider, Israel’s SpaceCom.

Montenegro, 4iG, One Montenegro (formerly Telenor Montenegro), PPF Group