HTCC buys Invitel for EUR 470 million
Telecompaper writes…Hungarian Telephone and Cable Corp (HTCC) has agreed to acquire Hungarian fixed-line rival Invitel for EUR 470 million. The combined group commands already a 20 percent market share, making it the number-two player in Hungary after incumbent Magyar Telekom, owned by Deutsche Telekom. For the year to September 2006, they had joint sales of EUR 346 million and EBITDA of EUR 119 million. The companies expect to realise EUR 14 million in operational cost savings as well as further reductions in capex from the benefits of integrating networks.
The purchase price includes Invitel’s debt and is equal to 6.1 times Invitel’s EBITDA for the 12 months to September 2006. HTCC will issue debt to finance the deal, as well as 1.1 million of its shares, equal to a 6.2 percent stake, to Invitel management. Pending regulatory approval, the deal is expected to close in the first half of 2007. Invitel’s CEO Martin Lea will head the combined group, with Invitel’s Robert Bowker serving as CFO. HTCC’s CEO Torben V Holm will step down after assisting with the early phase of integration. HTCC is 63 percent owned by Denmark’s TDC, with the remainder listed on the stock market. Invitel is controlled by the private equity groups Mid Europa Partners and GMT Communications.
