Vodafone Group Plc is set to sell Vodafone Hungary to 4iG and Corvinus, a state holding company of Hungary, in a cash-deal for €1.8 billion.

This represents a multiple of 9.1x Adjusted EBITDAaL for the 12-month period ending 31 March 2022, Vodafone Group said.

The combination of Vodafone Hungary and 4iG will create a clear #2 operator across mobile and fixed communications with broader ICT capabilities.

DIGIMobil, Telekom, Telenor and Vodafone are the key telecom operators in Hungary.

Vodafone Group CEO Nick Read said: “This combination with 4iG will allow Vodafone Hungary, which has a proud history of success and innovation in the country, to play a major role in the future growth and development of the sector. The combined entity will increase competition and have greater access to investment.”

The transaction is subject to completion of confirmatory due diligence, the parties entering into binding transaction documentation and obtaining regulatory approval. The parties are targeting completion by the end of 2022.

Vodafone’s shared services business in Hungary – VOIS – is not part of the transaction. VOIS will continue to provide services to Vodafone’s other operating companies.