TDC, Denmark’s leading provider of land-line phone access, has reached an agreement to sell its Hungarian unit Invitel to CEE investment firmMid Europa Partners, who will purchase a controlling share for nearly € 7.4 million. In addition to the 64.6% stake in Invitel Holdings AS, Mid Europa has also agreed to take on all rights and obligations of an existing € 34.1 million subordinated PIK loan, and submit a tender offer for a € 125 million loan due in 2013.
The PIK loan may be increased to a maximum of € 91.4 million in order to meet capital needs of an Invitel subsidiary. The deal must gain regulatory approval before it can be completed.
Invitel Holdings AS (www.invitel.hu)
Invitel Holdings was established in 2007 through a merger of five individual Hungarian telecom companies. Today it is the second largest provider of land-line telephone and broadband internet in the country as well as a competitor across the major CEE telecom markets.
Invitel’s annual consolidated revenues are near € 340 million, earned through service to 1 million residential accounts and more than 50,000 business accounts. The company is based in Budaörs, Hungary and employs 1,460 people.
Mid Europa Partners (www.mideuropa.com)
Mid Europa Partners was established in 2005 by EMP Europe Ltd., the European arm of worldwide private equity firm EMP Global.
Investing primarily in Central and Eastern Europe, the company seeks opportunities with companies in sectors with high barriers to entry, having enterprise values between €100 million and €1.5 billion. Mid Europa Partners currently manages three funds; AIG Emerging Europe Infrastructure Fund LP, Emerging Europe Convergence Fund II LP, and Mid Europa Fund III LP. The three funds combine for a total of nearly €3.0 billion in assets under management by Mid Europa.
October 2, 2009
Central & Eastern Europe, Hungary, Investment, Private Equity News