December 9 (SeeNews) - Hungarian IT service management company 4iG said it has signed a final contract to buy a 80.27% stake in Albanian telecommunications operator Albtelecom from Cetel Telecom, a majority-owned subsidiary of Turkey’s diversified holding company Calik Holding.
The transaction is expected to close in January 2022, subject to the approval of the Albanian authorities, 4iG said in a press release on Wednesday.
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"The acquisition is another important step in the 4iG Group’s expansion strategy in the Western Balkans: the group expands in another country in the region as a strategic investor, bringing its telecommunications and digital services," the Hungarian company added.
As part of the deal, Calik Holding will acquire a 3.2% stake in 4iG as an institutional investor.
The value of the transaction was not disclosed.
After the transaction, Albania will continue to own a minority stake in Albtelecom through the ministry of finance and economy, which holds an interest of 13.78%, and the Albanian Post, which has a 2.47% stake, 4iG noted. The remaining 3.48% stake is distributed among individuals, Albtelecom's website shows.
Established in 1912, Albtelecom operates 88 stores in the country, employing a total of 743 people. The company is the largest landline telecommunications provider and the third largest mobile operator in Albania. Albtelecom generated revenues of 57.9 million euro ($65.6 million) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 17.4 million euro in 2020.
Earlier this year, 4iG signed a non-binding agreement to acquire the entire capital of Telenor Montenegro from Dutch-registered PPF Group.
($ = 0.8831 euro)