HTCC acquires Hungarian fixed line rival Invitel for USD611 million

10 Jan 2007

In a press release published yesterday TDC of Denmark said its Hungarian Telephone & Cable Corp (HTCC) unit is to acquire Invitel Tavkozlesi Szolgaltato (Invitel), the country’s second largest fixed line service provider, for USD611 million. Under the deal, HTCC will buy 100% of the shares in Matel Holdings, in turn indirectly acquiring 99.98% of Invitel’s stock – plus the assumption of debt on closing. According to TDC, HTCC will finance the deal through cash funded by new borrowing and the issuing of 1.1 million new shares, equal to around 6.2% of the Hungarian operator’s diluted share capital, to ‘certain members’ of Invitel’s management by way of payment for their current Invitel shares. In addition, the Danish parent confirms it is willing to action 25 warrants to acquire 2.5 million HTCC ordinary shares for USD25 million, which will be paid to the unit in the form of loan notes issued by HTCC and held by TDC with an aggregate principal amount equal to USD25 million. Upon completion of the transaction, TDC’s 62.5% stake in American Stock Exchange-listed HTCC (68.5% on a fully diluted basis) will be reduced to 62%.

Hungary,Invitel (a subsidiary of DIGI),

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