Socialists slam ‘underhand’ Vodafone sale over EUR 31.3M loss
The Socialist Party is filing a complaint to the authorities in connection with the “underhand” sale of Vodafone to a state-owned fund which “recorded a loss of around 13 billion forints [EUR 31.3m]” during the sale of the telecommunications company in the period of less than a year, and the opposition alleges that the state exchanged high-value shares for ones of lower value in opaque transactions that produced losses seriously detrimental to national interests.
The state ploughed billions of forints of public funds into telecommunications and IT company 4iG, the majority owner of Antenna Hungaria, to bolster its market position, thereby squandering 13 billion forints of public assets in order to give a private company a competitive advantage, the Socialists said in a statement on Tuesday. The statement said the transactions raised suspicion of mismanagement and negligence, adding that it was justified for the authorities to launch an investigation.
The statement said on January 31, 2023, the state fund in question, Corvinus, purchased a 49 percent stake in Vodafone Hungary for 323.4 billion forints. Later, it added that 19.5 percent of shares were exchanged for 128.7 billion forints. Two days later, Corvinus exchanged the 19.5 percent Vodafone shares in other telecommunication companies, Yettel and Cetin, during which the value of Vodafone shares was set at 125.7 billion forints, 3 billion forints less than two days earlier. Then, in December 2023, the statement added that Corvinus sold its Yettel and Cetin shares for 115.8 billion forints, recording a further loss of 9.9 billion forints.
One Hungary instead of Vodafone
As we wrote yesterday, listed ICT company 4iG rebranded the commercial telecommunications services of its units Vodafone Magyarorszag, DIGI, Antenna Hungaria and Invitech under the One aegis from January 1. Read details HERE: Vodafone is gone! Acquirer One Hungary opens flagship store in Budapest.
Also, it’s interesting that Vodafone received a gigantic fine from Hungarian authorities before the transaction; details are HERE.