Magyar Telekom to sell 100% shareholding in Pro-M Zrt.

Magyar Telekom has signed a share purchase agreement to sell its 100% shareholding in Pro-M Zrt. to National Infocommunications Service Company Limited by Shares. As consideration for the equity sale, Pro-M loans from Magyar Telekom and Pro-M’s working capital needs, the total price of the transaction is HUF 19.9 billion. A final breakdown of the total transaction price will be determined at closing, which is expected to take place at the end of August 2012.

Pro-M Zrt. was established by Magyar Telekom and T-Mobile Hungary in 2005 to build out and operate a national Unified Digital Radio Network (EDR) system in Hungary. EDR is a national 380–400MHz band professional mobile radio network used by the emergency services (i.e. the police, fire departments and ambulance services) and other public safety bodies. EDR runs on terrestrial trunked radio (TETRA) technology, the international standard for public safety and security mobile radio communications.

National Infocommunications Service Company Ltd. is responsible for operating telecommunications infrastructure in the public sector; it is owned by the Hungarian State.