RO telecom group Digi agrees to sell Hungarian operations for EUR 625 mln

Romanian Dutch-registered telecommunication group Digi Communications, through its Romanian subsidiary RCS&RDS, agreed to sell its Hungarian operations to 4iG - controlled by Konzum Management investment vehicle with influential businessman Lorinc Meszaros among shareholders.

On November 29, the parties completed negotiations and drafted the contract for the transaction for a price of EUR 625 mln, Ziarul Financiarreported.

“Given the reorientation of our strategy towards Western European markets, it is time to let our 4iG partners continue this beautiful story, and we are confident that they will continue our work and enhance the success of this operator,” says Sergei Bulgac, CEO of Digi Communications NV.

The deal is pending approval from the competition body.

According to the Hungarian National Media and Telecommunications Authority (NMHH), DIGI is the second-largest operator, in terms of market share, in the pay-TV, broadband internet and fixed telephony service segments.

The parties had agreed at the end of March 2021 the terms of a preliminary agreement concerning the purchase of DIGI Távközlési Szolgáltató Ltd. and its subsidiaries (Invitel, I TV and DIGI Infrastructure).

Digi Communication group has operated in Hungary for 23 years. It now offers a complete portfolio of services: cable and satellite (DTH) television, fixed and mobile telephony.

At the same time, DIGI is the first telecommunications service provider in Hungary to launch the Fiberlink 10G service, the package with the highest bandwidth.

In 2020, the number of Digi subscribers on the Hungarian market was 1.1 million, and the revenue-generating units (RGU) were over 2.5 million.

At the same time, Digi’s Hungarian operations recorded consolidated revenues of HUF70bn (EUR 200 mln) and adjusted EBITDA of HUF19bn (EUR 54 mln).

(Photo courtesy of the company)