Magyar Telecom B.V. has agreed to sell its holdings in the Invitel Group to the China CEE Investment Co-operation Fund, advised by CEE Equity Partners, the company said.
The sale, approved unanimously by Matel B.V.´s board of directors, is subject to shareholder and Hungarian competition authority approval. The sale places the Invitel Group at an enterprise value of EUR 202m.
Approval of the company´s 49% shareholder, Matel Holdings Limited, is being solicited via a consent request, distributed via the customary channels.
Matel Holdings Limited shares are stapled to Matel B.V.´s senior secured notes due June 2018 as units. The notes will be redeemed upon completion of the sale. Matel B.V.´s 51% shareholder, Mid Europa Partners, has expressed its support of the sale.
Competition Authority filings are being submitted parallel to the shareholder consent process. Should shareholder consent be obtained, the sale is estimated to complete in the second half of February, upon Competition Authority approval.
Rothschild, Dechert and EY advised the sellers in the transaction. The buyer was advised by CMS Cameron McKenna, PwC, A.D. Little and Solon. White & Case, Dentons and Neocleous advised on the financing of the transaction.
Magyar Telecom B.V. is the holding company for the Invitel Group, a leading Hungarian infrastructure-based telco and IT service provider.
Invitel offers a portfolio of services for residential and small business customers, including a variety of multimedia and entertainment services.