Magyar Telekom disposes of its majority stake in Crnogorski Telekom

Magyar Telekom disposes of its majority stake in Crnogorski Telekom

Budapest, January 10, 2017 12:00

Magyar Telekom has signed a Share Purchase Agreement with Hrvatski Telekom d.d. As a result of the transaction, Magyar Telekom's majority (76.53%) stake in Crnogorski Telekom A.D. Podgorica will be transferred to Hrvatski Telekom d.d for a total consideration of EUR 123.5 million (approximately HUF 38.1 billion at the January 9, 2017 HUF/EUR exchange rate of 308.7).

The disposal of this stake is in line with Magyar Telekom's renewed focus on its Hungarian operations where efforts are underway to further strengthen the Company's position in the mobile market and its ICT capabilities, alongside maintaining investment in our fixed networks and raising penetration levels in those areas already served by high speed internet access.

In addition, Magyar Telekom expects today's transaction to accelerate the recent downward trend in its net debt ratio (net debt/total capital) such that by the end of March 2017, it will be within the targeted range of 30-40% as set out in its dividend policy. As of September 30, 2016, the Company's net debt ratio stood at 41.6%.

Following the closing of the transaction, expected by the end of January 2017, the Montenegrin operation will no longer be consolidated into Magyar Telekom Group's financials.

As a result of the transaction the guidance for 2017 has been modified as follows:

Public guidance

2016

2017 original

2017 modified

Revenue

around HUF 595 billion

HUF 585-595 billion

HUF 560-570 billion

EBIDTA

around HUF 193 billion

HUF 189-193 billion

HUF 181-185 billion

Capex 1

ca. 10% y-o-y decline

ca. 10% y-o-y decline

ca. 15% y-o-y decline

FCF

-

surpassing HUF 50 billion 2

surpassing HUF 50 billion 2

Dividend

target HUF 25 per share

1) excluding spectrum acquisitions and annual frequency fee capitalization

2) after minority dividend payments

LINK:	http://www.telekom.hu/about_us/press_room/press_releases/2017/january_...
	See more stories from telekom

Most recent headlines