Tue, Mar
88 New Articles

CMS Advises CEE Equity on Acquisition of Invitel Group from Magyar Telecom

CMS Advises CEE Equity on Acquisition of Invitel Group from Magyar Telecom

  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

CMS Cameron McKenna has advised the China CEE Investment Co-operation Fund, advised by CEE Equity Partners, on its acquisition of 99.9% of Magyar Telecom B.V.'s holdings in the Invitel Group. Dechert involved Magyar Telecom ("Matel") on the deal, which was approved unanimously by Matel's Board of Directors, but remains subject to shareholder and Hungarian competition authority approval. White & Case, Clifford Chance, Dentons, and Lakatos Koves & Partners advised on the new security package. 

The sale values the Invitel Group at an enterprise value of EUR 202 million, or 4.5x 2015 EBITDA. 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's senior secured notes due June 2018 as units. The notes will be redeemed upon completion of the sale. Matel’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. Upon completion of the sale, Matel will redeem the notes, distribute the net transaction proceeds to shareholders, and wind itself up. Distributions to holders of the units will be made as soon as practical after completion.

Magyar Telecom B.V. is the holding company for the Invitel Group, a leading Hungarian infrastructure-based telco and IT service provider. Matel's holdings in the group are the subject of the sale: Invitel Zrt., Invitech Solutions Zrt., Invitel Central Services Zrt. (each 99.991487%), and Invitel Technocom Kft. (100%).

Invitel Zrt. offers a portfolio of services for residential and small business customers, including a variety of multimedia and entertainment services such as interactive, 3 digital and High Definition television, and fast Internet offerings and telephony services across its regional networks. Invitech Solutions Zrt. is an IT, datacenter, and telco provider to 6,000 midsize, enterprise, government, and wholesale customers nationwide. Invitech Solutions Zrt. has network in all top 100 cities in Hungary, has a 9000-kilometer national backbone network with 11 border-crossing points and operates six high-spec data centers. 

Commenting on the transaction, Mark Nelson-Smith, Chairman of Matel, said "The Invitel Group has achieved an impressive operational turnaround over the past several years, returning to EBITDA growth starting in 2015 after a decade of decline. The China CEE Fund and CEE Equity Partners will provide the Company with the support and stability to develop its business further. We wish management and the entire Invitel team continued success.” Tamas Szalai, CEE Equity Partners Investment Director, said that “the Invitel Group’s focus on residential fiber developments and converged B2B IT-telco solutions is a winning strategy. We are fully committed to support the Invitel Group’s strategic development efforts."

The CMS team was led by Partner Aniko Kircsi and included Partner Dora Petranyi, Senior Counsel Corporate Gabor Gelencser, and Senior Associate Szabolcs Szendro.

The Lakatos Koves & Partners team consisted of Partners Szabolcs Mestyan and John Fenemore and Trainee Lawyers Balazs Rokob and Kristof Nemeth.

Imagesource: invitelcsoport.hu

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

Firm's website.

Our Latest Issue