Hungary-based communications and IT company 4iG signed a preliminary deal to acquire Telenor Montenegro from PPF Telecom Group, subject to its assessment of the business and regulatory approval.
In a statement 4iG noted it would begin due diligence with an aim of making a formal offer by end-September and completing the move by end-November.
The move follows 4iG’s pending deal to acquire Digi Communications’ Hungarian unit announced in March as it looks to make a splash in the mobile sector. It is also attempting to buy a majority stake in satellite company SpaceCom.
4iG president and CEO Gellert Jaszai said the latest move was part of a regional expansion strategy: “We see significant growth potential in the Western Balkans region, and we expect the economic growth of the region to be significantly boosted by the enlargement of the European Union in the next five years.”
“In addition to the acquisition just announced, we would like to further increase our presence in the region. To this end, we are constantly exploring investment opportunities in the telecommunications and IT sectors.”
GSMA Intelligence figures for Q2 place Telenor Montenegro as the largest of three operators in the country with 376,000 connections, though the other two players also have more than 350,000 each.
Telenor Montenegro was part of a €2.8 billion purchase by investment company PPF Telecom Group comprising Telenor’s telecoms units in Hungary, Bulgaria, Montenegro and Serbia alongside its regional IT business. The transaction was completed in 2018.
Following PPF Telecom Group’s acquisition of the assets, a number of reports have emerged questioning their future. In 2020 it denied planning to offload operations across all four markets as it undertook a restructure.
Although seemingly keen to offload its business in Montenegro, PPF Telecom Group is in the progress of buying-out minority investors in its O2 Czech Republic business.Subscribe to our daily newsletter Back