Hungary’s Magyar Telekom sells Bulgarian unit for EUR 5 m
2009-11-17 09:29:23
Hungary’s Magyar Telekom has announced on Tuesday that it has sold Orbitel, its fully-owned Bulgarian subsidiary, to Spectrum Net AD for EUR 5 million. "Magyar Telekom decided to exit the Bulgarian alternative retail telecommunication business and focus its operations on businesses where it sees more lucrative prospects," MTel said in a statement on the website of the Budapest Stock Exchange (BSE).
The deal is subject to local Competition Office approval and is expected to close by the end of the first quarter of 2010.
Orbitel is an alternative telecommunication service provider in Bulgaria offering fixed line voice and data services for residential and business customers.
Orbitel is expected to reach revenues of around EUR 10 million and EUR 1 million of EBITDA in 2009.
Around EUR 3.5 million cash inflow is expected from the transaction in the first quarter of 2010. The remaining part of the purchase price is undertaken obligation by the buyer.
This is not a major transaction relative to Magyar Telekom’s size and the proceeds translate to around a single forint per share.
