• Satellite Evolution Group

4iG signs a preliminary agreement to acquire Telenor in Montenegro


4iG PLC has announced its second international transaction, which will allow the company to continue building its telecommunications portfolio. 4iG has entered into a non-binding term sheet with the subsidiary of PPF Telecom Group to acquire 100 percent stake in Telenor d.o.o. Podgorica, Montenegro’s leading mobile operator. Telenor Montenegro has 338,000 subscribers, 150 base stations and 4G coverage reaching more than 98 percent of the population. The successful completion of the transaction, following the completion of the due diligence, is subject to the approval of the Montenegrin authorities.


4iG has entered into a preliminary agreement with the subsidiary of PPF Telecom Group to acquire 100 percent stake in Telenor d.o.o., Podgorica (Telenor Montenegro), Montenegro’s leading mobile operator. Telenor Montenegro was acquired in 2018, together with several regional mobile operators, by PPF Group investment company, founded in the Czech Republic. A non-binding agreement on the details of the transaction was announced by the parties on the Budapest Stock Exchange.


With its 338,000 subscribers and sales revenue of EURO€43 million in 2020, Telenor Montenegro is the absolute market leader in the Montenegrin mobile segment. Based in Podgorica, the company’s main revenue comes from private and business subscribers (67 percent). The target has 150 privately owned base stations covering all major roads, most tunnels and all the beaches and winter tourist resorts in Montenegro. As a result, Telenor Montenegro reaches 98 percent of the Montenegrin population with its 4G-based mobile services, providing a stable growth platform.


“The acquisition of Telenor Montenegro is in line with 4iG’s regional expansion strategy, and the target’s solid background and market position, as well as its strong revenue generating capacity, can bring high added value to our Group,” said Gellért Jászai, CEO–Chairman of 4iG, following the announcement. “We see significant growth potential in the Western Balkans region, and we expect that over the next five years, the region’s economic growth could be boosted significantly by the enlargement of the European Union. We therefore intend to further increase our presence in the region, in addition to the acquisition we have just announced. To this end, we are continuously exploring investment opportunities in the telecoms and IT sectors,” stressed the CEO–Chairman.


According to the preliminary agreement, 4iG will start due diligence on the target company, the results of which are expected at the end of September and will allow it to make a final offer for the acquisition of Telenor d.o.o., Podgorica. The parties have agreed to close the transaction by 30 November 2021 at the latest, subject to the approval of the Montenegrin authorities.