Vodafone is set to sell Vodafone Hungary to 4iG and Corvinus, a Hungarian state holding company, for HUF 660 billion or €1.7 billion in cash.

The deal represents a multiple of 8.4x Adjusted EBITDAaL for the 12-month period ended 31 March 2022.

Vodafone will use proceeds from the sale 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.”

Completion of the transaction is subject to customary conditions and is expected to take place in January 2023, Vodafone said.