One of Hungary’s largest mobile networks may soon come under Arab ownership

Soon, it might be worth reading stock exchange releases in Arabic… One of Hungary’s largest mobile networks, Yettel, could have a new owner from Abu Dhabi. Here are the details of the acquisition.

Arab ownership

Telex writes that Karim Bennis, CFO at Emirates Telecommunications Group Company Pjsc., has signed a major deal that will impact one of Hungary’s largest mobile networks too. e& aims to acquire a controlling stake (50% + 1 economic share) in the Central and Eastern European operations of the Czech PPF Telecom Group. The transaction, excluding the Czech operations, will see majority Arab ownership extending to Bulgaria, Serbia, Slovakia and Hungary, with Yettel being the notable Hungarian entity affected by this new ownership.

About the transaction

According to experts, the transaction will go through in the first quarter of 2024. It’s all a question of how fast they can acquire the regulatory approvals. In addition, the communications team will have to clarify and explain the changes to investors and customers as well. As it seems, the parties have already agreed on the financial background of the transaction. e&’s announcement states:

The upfront consideration for the acquisition is €2,150 million in exchange for a 50%+1 share economic stake in both the service and infrastructure companies (except for Hungary where Corvinus owns a 25% stake in the respective businesses). The transaction is also subject to up to €350 million in earn-out payments if PPF Telecom exceeds certain financial targets within the three year period after closing and is subject to a claw back of up to €75 million if such financial targets are not achieved.