Hungary Takes Over Yettel to Strengthen Communications Sector

Hungarian state-owned development finance institution Corvinus International Investment acquired an indirect minority stake in operator Yettel. The move is part of an effort by the government to push the development of the communications sector more forcefully and efficiently with its increased influence.

Hungarian government claims that the increase in its role in the country’s telecommunications sector would provide benefits for customers, aid economic performance, and up international competitiveness. The acquisition takes the form of a so-called share exchange with Antenna Hungaria, a subsidiary of 4iG Group, which bought Vodafone Group’s operations in Hungary earlier this year together with Corvinus.

Under this latest agreement, Corvinus exchanged 19.5% of its interest in Vodafone Hungary for the 25% stake in PPF Telecom Group‘s subsidiaries in the country owned by the 4iG unit. This comprised Yettel Hungary, its related wholesale infrastructure business, and its property company. As a result of the swap, Antenna Hungaria has no remaining interest in Yettel but owns an increased 70.5% stake in Vodafone Hungary. Corvinus retains the rest of Vodafone Hungary.