The owners of Hungary’s new state-controlled mobile operator MPVI Mobile have reportedly raised the company’s capital from HUF500m (US$2.2m) to HUF14.1bn (US$63m) via non-cash contributions.
Hungary’s Budapest Business Journal (BBJ) said MPVI…
The owners of Hungary’s new state-controlled mobile operator MPVI Mobile have reportedly raised the company’s capital from HUF500m (US$2.2m) to HUF14.1bn (US$63m) via non-cash contributions.
Hungary’s Budapest Business Journal (BBJ) said MPVI confirmed its three owners – Hungarian Development Bank (MFB), MVM Hungarian Electricity and Magyar Posta – made the contributions in July, three months after MPVI was established. The capital increase is also backed up by company court data, the BBJ reported.
The contributions took the form of rights to assets proportionate to the owners’ holdings in the new company, the report stated. MFB and MVM each have 45% stakes in MPVI and Magyar Posta owns the remaining 10%.
MFB and MVM transferred frequency rights to MPVI, the report stated, while Magyar Posta granted the mobile operator advertising rights.
The Hungarian regulator controversially awarded the state consortium 900MHz spectrum at its January auction, paving the way for the establishment of the new mobile operator. The three existing operators – Magyar Telekom, Telenor Hungary and Vodafone Hungary – were unsuccessful in their appeal against the initial decision, prompting Magyar Telekom to file a petition with the Metropolitan Court. The court is expected to reach a decision on the matter on 3 September, the BBJ report stated.
The European Commission (EC) confirmed in late February that it was also examining the auction following complaints from third parties.
The state consortium paid HUF10bn (US$44.7m) for the spectrum and, in accordance with the terms of the original tender invitation, is required to launch its own service in Budapst by the end of the year. However, the BBJ noted industry observers have doubted the new company will be able to build the necessary infrastructure in time.
MPVI Mobile could not be reached for comment.
