TDC subsidiary pursues acquisition in Hungary
9 January 2007 - HTCC, TDC’s subsidiary in Hungary, has concluded an agreement to purchase the shares in Invitel, the second largest fixed line telecommunications service provider in Hungary, at a total price of EUR 470m, including the assumption of debt. The transaction is subject to customary closing conditions, including Hungarian and Romanian competition regulatory approvals.
”With the acquisition of Invitel, HTCC will become a strong challenger in the market. HTCC’s market position improves markedly and it is in line with our strategy in the Hungarian market,” says Jesper Theill Eriksen, chairman of HTCC and president of TDC Mobile International.
With the acquisition, HTCC is expected to hold a 20 percent market share of the Hungarian fixed line market. The combination of the two companies is expected to create significant synergies.
”In addition, HTCC will gain a solid platform for developing and marketing new business concepts within VoIP, triple play, etc. This makes it possible for HTCC to take advantage of the new business opportunities arisen from the recent years’ liberalization of the Hungarian telecom market,” says Jesper Theill Eriksen.
HTCC finances the acquisition of Invitel by raising new loans and by issuing up to 1.1m new HTCC shares to be purchased by selected members of the Invitel management. Invitel’s earnings before interest, taxes, depreciation and amortization (EBITDA) were EUR 77.6 million for the 12 months ending 30 September 2006.
Invitel offers telephony, Internet and data services for residential and business customers in Hungary and is the second largest operator in the Hungarian telecom market. Invitel was founded in 1994.
HTCC owns the Hungarian telco Hungarotel, supplying fixed line and broadband connections in several geographical Hungarian areas. HTCC also owns PanTel, the leading alternative network operator in Hungary with a national optical fiber network. The fiber network is connected to all 7 adjacent countries.
HTCC is listed on the American Stock Exchange (HTC at Amex). HTCC’s stock market release about the acquisition is to be found at: www.htcc.hu
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