An investment fund established by the Export-Import Bank of China and other institutional investors based in central and eastern Europe, has agreed to acquire Hungarian telecommunications company Invitel Group at an enterprise value of €202 million (US$214 million).
Invitel is the second-largest incumbent fixed-line telecommunications and broadband Internet services provider serving more than one million homes in Hungary, including both residential and corporate customers.
CEE Equity Partners, the investment advisor to the China CEE Investment Cooperation Fund, is to buy the company from Mid Europa Partners, a buyout investor in central and south eastern Europe with over €4.3 billion (US$4.6 billion) in funds raised since inception.
"Under Mid Europa's leadership, we have strengthened Invitel's position in the Hungarian market and we are grateful for their support. We look forward to further developing the business under the ownership of CEE Equity," said David Blunck, the CEO of Invitel, in a statement.
The transaction is subject to customary closing conditions, including competition clearance, and is expected to complete in the first quarter of 2017.
Established in 1994, the Export–Import Bank of China, also known as China Exim Bank, is one of three institutional banks in China chartered to implement the state policies in industry foreign trade, as well as provide financial support to promote the export of Chinese products and services.
China Exim Bank has long been an investor in developing nations in Africa and Asia, but in recent years has been expanding its investments in Eastern Europe. Solely owned by the Chinese government and under the direct leadership of the State Council, the bank's international credit ratings are the same as China's sovereign ratings.