PODGORICA (Montenegro), July 12 (SeeNews) – Hungarian IT service management company 4iG has signed a non-binding agreement to acquire the entire capital of Telenor Montenegro from Dutch-registered PPF Group, 4iG said.
The parties have agreed to close the transaction by November 30 at the latest, subject to the approval of the Montenegrin authorities, 4iG said in a statement on Friday.
"The acquisition of Telenor Montenegro is in line with 4iG's regional expansion strategy, and the Target's solid background and market position, as well as its strong revenue-generating capacity, can bring high added value to our Group,” the CEO-Chairman of 4iG, Gellert Jaszai, noted.
4iG will start due diligence on Telenor Montenegro, the results of which are expected at the end of September and will allow the group to make a final offer, the Hungarian company said.
“We see significant growth potential in the Western Balkans region, and we expect that over the next five years, the region’s economic growth could be boosted significantly by the enlargement of the European Union. We, therefore, intend to further increase our presence in the region, in addition to the acquisition we have just announced. To this end, we are continuously exploring investment opportunities in the telecoms and IT sectors,” Jaszai explained.
Telenor Montenegro was acquired by PPF Group in 2018, together with several regional mobile operators. With its 338,000 subscribers and sales revenue of 43 million euro ($51 million) in 2020, Telenor Montenegro is the absolute market leader in the Montenegrin mobile segment.
Two-thirds of Telenor Montenegro's revenue comes from private and business subscribers. Telenor Montenegro reaches 98% of the Montenegrin population with its 4G-based mobile services.
($ = 0.842321 euro)