The Hungarian state has become a major shareholder in Albania’s two top telecommunications companies, ALBtelecom and ONE, while fears of a duopoly were ignored by regulators.
Hungarian company 4iG purchased just over 80% of shares in ALBtelecom in early March after it was approved by the competition authority in January. Also in March, 4iG wrapped up a purchase of 99.889% of ONE Telecommunications. This means 4iG now owns a significant share of the Albanian mobile and fixed mobile communications sector.
4iG’s CEO is Gellert Jaszai, a man close to Hungarian leader Viktor Orban.
Now, 4iG has transferred its shares to Antenna Hungaria in the form of a contribution to increase capital. The added value is estimated at around EUR 350 million. This means 4iG increased its stake in Antenna to 76.78% of the company while the Hungarian state retained the rest.
Therefore, Albania’s two main telecoms companies are now partially owned by the Hungarian state.
This transaction has created the second-largest telecommunications group in Hungary with a significant portfolio of fixed, internet and television services, as well as fixed and mobile services in the region and the Western Balkans, reported Monitor.al.
The main shareholder and CEO of 4iG, Gellért Jászai, said the acquisitions made over the past year have completed the process of transforming 4iG, from an IT systems company into an international communications information group. The group did not even rule out further expansion, through the realization of new acquisitions.
“In the coming period, we will seek to take advantage of synergies and collaborations between our companies and will continue to explore acquisition opportunities to increase the Group’s market share. “In 2022 we are trying to enter the B2C segment with telecommunications services under a single name and with a new strategy, not only in Hungary, but also in the Western Balkans region”, said Jászai.
During Orban’s rule, Hungary has experienced a significant decline in its relations with the EU and is now subject to various procedures over rule of law failures. The country, and Orban have also been criticised for failing to take a tough stance on Russia’s invasion of Ukraine, and a close relationship with President Vladimir Putin. Most recently, Putin called Orban to congratulate him on his recent electoral win.
