China Exim Bank fund buys Hungary's Invitel from Mid Europa

The sellers are Mid Europa Partners and an entity known as Matel Holdings, which hold stakes of 51% and 49%, respectively. Magyar Telecom - the holding company for Invitel, not to be confused with Magyar Telekom, Invitel’s major competitor – said in a statement that Matel’s shares are stapled to senior secured notes that are due in June 2018. They will be redeemed on completion of the sale.

According to unquote”, AVCJ’s Europe-focused sister title, Mid Europa’s involvement in Invitel stretches back 14 years. Its precursor, AIG Emerging Europe Infrastructure Fund, participated in a EUR325 million buyout of the company alongside GMT Communications Partners, through the acquisition of Vivendi Telecom Hungary. They exited in 2007 to Denmark’s TDC at an enterprise valuation of EUR470 million.

Mid Europa returned in 2009, buying a 64.6% stake in Invitel – which was by this point listed in the US – from TDC at a reported valuation of EUR700 million. The GP subsequently increased its holding to 91.8% through a tender offer and the business was delisted. A restructuring in 2013 saw EUR155 million in new notes issued while EUR174 million worth of notes issued four years earlier converted into a 49% equity holding.

Invitel claims in its 2015 annual report to be the third-largest provider of fixed-line telecom services in Hungary and the fourth-largest cable network operator following the acquisition of Fibernet in 2011. As of December 2015, it had 293,000 residential voice customers, 169,000 residential broadband subscribers, and 196,000 cable lines covering TV, broadband and voice services. In the corporate segment, Invitel had 79,000 voice telephone lines and 28,000 DSL and leased lines.

The company posted revenue of EUR144.8 million in 2015, down from EUR149.5 million the previous year, while its net loss narrowed to EUR12.4 million from EUR17 million. EBITDA came to EUR44.9 million, up from EUR44.3 million.

The China-CEE Fund was established by China Exim Bank in partnership with institutional investors from Central and Eastern Europe. It has $435 million in committed capital and is managed by CEE-Equity Partners. The fund targets infrastructure, energy, telecom and specialized production assets, typically investing $20-70 million in equity and also helping to arrange debt financing.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Europe
• Buyouts
• Trade sale
• Infrastructure
• China
• Exit
• China Exim Bank