Vodafone Group PLC (LSE:VOD) will receive €1.7bn from the sale of its Hungarian arm, Vodafone Magyarország Zrt, to 4iG Public Limited Company, a Hungarian IT company, and Corvinus Zrt, a a Hungarian state holding company.
The FTSE 100-listed telco confirmed today it has entered into binding terms in relation to the sale which was first announced in August 2022.
The price agreed represents a multiple of 8.4x adjusted EBITDAaL for the 12-month period ended 31 March 2022, with proceeds to be used for deleveraging.
Margherita Della Valle, Vodafone's interim chief executive, said: "This combination establishes a scaled converged operator across mobile and fixed communications and supports the Hungarian government's goal of creating a national Information and Communications Technology champion.”
“The combined entity will increase competition and accelerate investment in the ongoing digitalisation of Hungary."
Completion of the deal is expected this month.