Magyar Telekom to Acquire Fiber Network

Magyar Telekom, the leading Hungarian telecommunications service provider, has announced on the website of the Budapest Stock Exchange that it has exercised its call option on the business quota of Cecoin Ltd. allowing it to acquire a fiber network covering 110,000 access points in Hungary for a purchase price of HUF 6.95 billion.

In 2014, Magyar Telekom concluded an agreement on the build-out of a fiber network and in 2015, a 12-year lease contract with Cecoin Ltd. on the use of the network which is covering 110,000 access points and is used to serve 38,000 of its current subscribers.

As a result of this transaction, Magyar Telekom will gain further efficiencies by reducing its leasing fee outpayments.

The closing of the transaction remains subject to notification to and acknowledgment by the relevant authority, the company's statement points out.