REG - Vodafone Group Plc - Sale of Vodafone Hungary

VodafoneAnnouncement

09/01/2023 07:00

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RNS Number : 0659M  Vodafone Group Plc  09 January 2023

9 January 2023

VODAFONE ENTERS INTO BINDING TERMS IN RELATION TO THE SALE OF VODAFONE HUNGARY

Further to the announcement on 22 August 2022, Vodafone Group Plc(1)
("Vodafone") announces that 4iG Public Limited Company ("4iG") and Corvinus
Zrt ("Corvinus", a Hungarian state holding company) (all together the
"Parties") have completed due diligence and the Parties have entered into
binding terms in relation to the sale of 100% of Vodafone Magyarország Zrt
("Vodafone Hungary") to 4iG and Corvinus (the "Transaction").

Vodafone will receive a total cash consideration of HUF 660bn (€1.7bn)(2,3),
which represents a multiple of 8.4x Adjusted EBITDAaL for the 12-month period
ended 31 March 2022. Proceeds from the sale are intended to be used for
deleveraging.

Margherita Della Valle, Vodafone Group's interim Chief Executive said: "This
combination establishes a scaled converged operator across mobile and fixed
communications and supports the Hungarian government's goal of creating a
national Information and Communications Technology champion. The combined
entity will increase competition and accelerate investment in the ongoing
digitalisation of Hungary."

Completion of the Transaction is subject to customary conditions and is
expected to take place in January 2023.

Notes to announcement

1.     Vodafone Europe B.V. is the selling entity which is a 100% owned
indirect subsidiary of Vodafone Group Plc

2.     Converted from HUF to EUR based on the exchange rate of 395.48 as
at 6 January 2023

3.     Cash receivable subject to customary purchase price adjustments

- ends -

For more information, please contact:

Investor
Relations
Media Relations

Investors.vodafone.com
Vodafone.com/media/contact

ir@vodafone.co.uk
GroupMedia@vodafone.com

Registered Office: Vodafone House, The Connection, Newbury, Berkshire RG14
2FN, England. Registered in England No. 1833679

About Vodafone

Unique in its scale as the largest pan-European and African technology
communications company, Vodafone transforms the way we live and work through
its innovation, technology, connectivity, platforms, products and services.

Vodafone operates mobile and fixed networks in 21 countries, and partners with
mobile networks in 47 more. As of 30 September 2022, we had over 300 million
mobile customers, more than 28 million fixed broadband customers, and 22
million TV customers. Vodafone is a world leader in the Internet of Things
(IoT), connecting more than 150 million devices and platforms.

For more information, please visit www.vodafone.com
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.vodafone.com%2F&data=05%7C01%7Csteve.sheppersonsmith%40vodafone.com%7Ce7143bf232844ba43f9e08dac67b1947%7C68283f3b84874c86adb3a5228f18b893%7C0%7C0%7C638040529289388442%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=Iq2RarSne6lJ9oWzWovAxktzK8Jmrgcbw3l2U3vRCy4%3D&reserved=0)
, follow us on Twitter at @VodafoneGroup or connect with us on LinkedIn
at www.linkedin.com/company/vodafone
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fvodafone&data=05%7C01%7Csteve.sheppersonsmith%40vodafone.com%7Ce7143bf232844ba43f9e08dac67b1947%7C68283f3b84874c86adb3a5228f18b893%7C0%7C0%7C638040529289388442%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=DLmf9E8rpMHh2iC%2FuWMJW7OD4Ks0rd2ld9SKFAaqNLM%3D&reserved=0)
.

About 4iG Nyrt.

4iG Nyrt., a Hungarian majority-owned company based in Budapest, Hungary is
the leading telecommunications and IT group in Hungary and the Western Balkan
region and one of the leading companies in the knowledge-based, digital
economy. The Budapest Stock Exchange listed capital market company's fresh and
innovative approach and its position as Hungary's leading IT systems
integrator make the group a leading residential and business service provider
in the region's digital transformation. 4iG's dynamic expansion strategy has
made it a key player in the telecommunications markets in Hungary and the
Western Balkans. The Group is continuously expanding its services, expertise,
and portfolio to meet the changes and needs of the telecommunications and IT
markets. The 4iG Group currently employs nearly 6,000 people.

Corvinus International Investment Zrt.

Corvinus International Investment Zrt. (Corvinus Zrt.) is a sovereign
investment management company wholly owned by the State of Hungary. Its aim is
to preserve and grow national assets and to exercise state ownership in
economic sectors of strategic importance. It contributes to Hungary's economic
development both by making strategic and financial investments and by
supervising the efficient operation of portfolio companies.

Disclaimer

Certain information contained in this document constitutes "forward-looking
statements", which can be identified by the use of terms such as "may",
"will", "should", "expect", "anticipate", "project", "estimate", "intend",
"continue", "target" or "believe" (or the negatives thereof) or other
variations thereon or comparable terminology, or by discussions of strategy,
plans, objectives, goals, future events or intentions. Such statements express
the intentions, opinions, or current expectations of the parties with respect
to possible future events and are based on current plans, estimates and
forecasts, which the parties have made to the best of their respective
knowledge, concerning, among other things, the respective business, results of
operations, financial position, prospects, growth and strategies, statements
regarding the transaction and the anticipated consequences and benefits of the
transaction, and the targeted closing date of the transaction. Due to various
risks and uncertainties, actual events or results or the actual performance
may differ materially from those reflected or contemplated in such
forward-looking statements.

Such risks and uncertainties include, but are not limited to, regulatory
approvals that may require acceptance of conditions with potential adverse
impacts; risks involving the parties' respective ability to realise expected
benefits associated with the transaction; the impact of legal or other
proceedings; and continued growth in the market for telecommunications
services and general economic conditions in the relevant market(s).

Furthermore, a review of the reasons why actual results and developments may
differ materially from the expectations disclosed or implied within
forward-looking statements can be found under "Forward-looking statements" and
"Principal risk factors and uncertainties" in the Vodafone Group Plc's annual
report for the year ended 31 March 2022

No assurances can be given that the forward-looking statements in this
announcement will be realised. As a result, recipients should not rely on such
forward-looking statements. Subject to compliance with applicable law and
regulations, the parties undertake no obligation to update these
forward-looking statements. No representation or warranty is made as to the
reasonableness of such forward-looking statements. No statement in this
document is intended to be nor may be construed as a profit forecast or
estimate for any period. Actual results could differ materially from those
expressed or implied.

This press release is for information purposes only and is not intended to and
does not constitute, or form part of, any invitation or offer to sell,
dispose, acquire, purchase or subscribe for any securities of any companies
mentioned herein in any jurisdiction, whether pursuant to the transaction or
otherwise. This document shall not be distributed or used by any person or
entity in any jurisdiction where such distribution or use would be contrary to
applicable law or regulation.

 

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