4iG, a leading IT and telecommunications player in Hungary, has announced the implementation of a complex transformation programme, which is aimed at unbundling the network infrastructure of its telecommunications companies and transforming the operations of its subsidiaries to exploit business and operational synergies more efficiently.
According to preliminary estimates, the structural separation could increase the value of the company by more than HUF 400 billion. The transformation programme will be completed in 2025 and the Board expects its implementation to increase the Group's profitability, operational efficiency, and competitiveness.
The transformation of 4iG Group's telecoms and IT businesses aims to create three areas: telecoms trading, telecoms infrastructure, and IT trading units. The transformation will convert 4iG's telecoms businesses into business and retail, as well as infrastructure companies, and integrate their operations according to the separate functions. As part of the process, the IT and systems integration activities currently operating within 4iG Plc will be reorganised into a separate company. In a similar way to IT, the Group's space and technology interests will be brought together in a standalone entity to better capitalise on the global growth opportunities in the industry. They will be centrally managed and strategically led by the holding company supporting and co-ordinating the activities, performance, and execution of the business strategy of the whole Group across borders.
Gellért Jászai, Chairman, 4iG Plc
One of the key objectives of the transformation process is to monetise the excess value of our network and mobile infrastructure in Hungary and abroad. Based on our current estimates, we expect the separation of commercial activities and infrastructure to increase the value of the company by more than HUF 400 billion. The transformation will enable the full exploitation of business and operational synergies, which will have a positive impact on the profitability and operational efficiency of our companies. The planned capital increase in our infrastructure companies will allow us to significantly reduce our debt and broaden the Group's borrowing options. The developments will contribute significantly to the creation of shareholder value,
