4iG Group has announced telecommunications infrastructure partnership agreement which, subject to the finalisation of confirmatory due diligence, negotiation and signing of final legal documentation and the required shareholder and regulatory approvals, has the potential to become one of the largest transactions of its kind in Hungary.

The objective of the transaction, explained 4iG, is to unlock the value in the group’s portfolio while establishing a more cost-efficient and profitable long-term infrastructure operating model. The preliminary agreement (non-binding term sheet) signed with e& PPF Telecom Group explores two transaction opportunities: 4iG would sell a minority stake in its fixed-line network, while acquiring a strategic stake in Hungarian mobile infrastructure companies, CETIN Hungary.

As part of the potential transactions, e& PPF Telecom Group would become a minority shareholder of up to 38 per cent in 2Connect. Separately from this, a sovereign wealth fund of the United Arab Emirates would purchase an additional 11% stake in the company. Following the transactions, 4iG will retain majority control of 2Connect.

Under the share-swap deal, 4iG Group’s telecommunications subsidiary, 4iG Telecommunications Holding would receive a strategic stake of up to 49 per cent in CETIN Hungary, whose shareholder base includes e& PPF Telecom Group and GIC Private Limited, a Singapore-based sovereign wealth fund. This step is particularly relevant for 4iG, as its telecommunications operator, ONE Hungary, does not currently have mobile infrastructure. By the potential acquisition of CETIN stake, 4iG could develop a more balanced and sustainable infrastructure portfolio in the long term.

A key aspect of the transactions is the convergent operating model that could emerge from the share swap deal. Through a cross-ownership and multi-tenant structure serving multiple commercial operators, the infrastructure companies could achieve substantial economies of scale, said 4iG. The new model could enable ONE Hungary and Yettel Hungary to rely on shared infrastructure while continuing to compete independently for customers. As a result of the related wholesale agreement, Yettel Hungary can enter the fixed broadband market in the second half of 2026 using 2Connect’s national fixed network, while ONE is expected to be able to use CETIN’s mobile radio infrastructure from 2028. The structure could provide significant annual operating cost synergies for both infrastructure companies, while creating additional value by allowing 4iG and e& PPF Telecom Group as owners, to directly benefit from the revenues and earnings generated by the infrastructure assets.

Completion of the transactions is subject to finalisation of confirmatory due diligence, negotiation and signing of definitive documentation and required shareholder and regulatory approvals. Closing is expected by early 2027.

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Categories: Articles, Broadband, Business, Telco

Tags: 4iG, Hungary, telco