Hungarian telecommunications conglomerate 4iG Group has announced the sale of its subsidiary, MIS Omega Mobilhalozat, which owns DIGI mobile infrastructure, to Pro-M, a company owned by the Hungarian state. The transaction, valued at 68 billion HUF, marks a strategic move to rationalize and consolidate 4iG's domestic mobile network portfolio as part of its integration strategy.
Acquisition of MIS Omega Mobilhalozat by Pro-M
According to the statement, the sale includes the transfer of 2,500 towers, active and passive radio network assets, as well as the rights and spectrum licenses for the use of the 1800mMHz frequency band.
The acquisition by Pro-M will provide the government telecommunication operator with a modern mobile telecommunications infrastructure to support broadband data transmission services for law enforcement agencies, the Hungarian Defence Forces, and the Disaster Management services.
Accelerating Development of the PPDR System
By acquiring the DIGI mobile infrastructure, Pro-M aims to significantly expedite the development of the PPDR (Public Protection and Disaster Relief) system, which involves the implementation of a standby radio frequency network. This will enhance communication capabilities for critical agencies, ensuring improved coverage and availability of services.
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Antenna Hungaria, the subsidiary responsible for 4iG Group's telecommunication portfolio, signed the agreement with Pro-M. The transaction value of 68 billion HUF includes the cost of one-year operation required by Pro-M and the expenses associated with building the new core network for the tower infrastructure. The purchase price will be paid in three installments by July 31, 2024.
The acquisition aligns with 4iG Group's integration strategy, which focuses on rationalizing and monetizing existing infrastructure within the company's telecommunications businesses. This approach aims to streamline operations, improve profitability, and raise capital.
Strengthening Communication Networks and Services
Pro-M, as a subsidiary of NISZ National Infocommunications Services Company and the telecommunications service provider for Hungarian emergency services, will leverage the acquisition to expand its closed-chain segmented communication network services for utilities in the gas, electricity, and water sectors. The infrastructure and network will enhance communication capabilities, making them more secure and reliable.
According to the statement, the transaction enables the efficient implementation of broadband data services and expedites the development of critical communication systems for public protection and disaster relief.
The completion of the transaction is subject to customary closing conditions and regulatory approvals.
