4iG Group to consolidate its telecommunications infrastructure business with transactions designed to unlock value potential of up to €1 billion

4iG Group has announced a potential telecommunications infrastructure partnership agreement which, subject to the finalisation of confirmatory due diligence, negotiation and signing of final legal documentation and the required shareholder and regulatory approvals, could become one of the largest transactions of its kind in Hungary. The objective of the transaction is to unlock the value embedded in the Group’s portfolio while establishing a more cost-efficient and profitable long-term infrastructure operating model. The preliminary agreement (non-binding term sheet) signed with e& PPF Telecom Group explores two significant transaction opportunities: 4iG would sell a minority stake in its fixed-line network, while acquiring a strategic stake in one of the largest Hungarian mobile infrastructure companies, CETIN Hungary.

2Connect: a premium fixed-line infrastructure company

As part of the potential transactions, e& PPF Telecom Group would become a minority shareholder of up to 38% in 2Connect. Separately from this, a sovereign wealth fund of the United Arab Emirates would purchase an additional 11% stake in the company. Following the transactions, 4iG will retain majority control of 2Connect.

CETIN Hungary: entering the mobile infrastructure market

Under the share-swap deal, 4iG Group’s telecommunications subsidiary, 4iG Telecommunications Holding would receive a strong strategic stake of up to 49% in CETIN Hungary, whose shareholder base includes e& PPF Telecom Group and GIC Private Limited, a Singapore-based sovereign wealth fund. This step is particularly valuable for 4iG, as its telecommunications operator, ONE Hungary, does not currently have mobile infrastructure. By the potential acquisition of CETIN stake, 4iG could develop a more balanced and sustainable infrastructure portfolio in the long term.

Infrastructure consolidation – significant saving potential

One of the most significant aspects of the transactions is the convergent operating model that could emerge from the share swap deal. Through a cross-ownership and multi-tenant structure serving multiple commercial operators, the infrastructure companies could achieve substantial economies of scale. The new model could enable ONE Hungary and Yettel Hungary to rely on shared infrastructure while continuing to compete independently for customers. As a result of the related wholesale agreement, Yettel Hungary can enter the fixed broadband market in the second half of 2026 using 2Connect's national fixed network, while ONE is expected to be able to use CETIN's mobile radio infrastructure from 2028. The structure could provide significant annual operating cost synergies for both infrastructure companies, while creating additional value by allowing 4iG and e& PPF Telecom Group as owners, to directly benefit from the revenues and earnings generated by the infrastructure assets.

Completion of the transactions is subject to finalisation of confirmatory due diligence, negotiation and signing of definitive documentation and required shareholder and regulatory approvals. Closing is expected by early 2027.