COPENHAGEN, Denmark-The Danish telecommunications services group Tele Danmark A/S said it sold some of its stake in Hungarian cellular operator Pannon GSM Tavkozlesi Rt.
Tele Danmark sold 70 percent of its 23.2-percent interest in the Hungarian carrier for about $160 million.
The Pannon shares were acquired by three co-owners of the company, PTT Telecom of the Netherlands, Telenor from Norway and Sonera, formerly called Telecom Finland.
The sale is expected to yield a tax-free income of about $146 million, which will be included in Tele Danmark’s accounts for the second half of 1998.
The transaction is subject to approval by the authorities in Hungary.
Pannon was established in 1993 and launched services in March 1994. At the end of June, Pannon counted 326,000 subscribers and a market share of about 40 percent, said Tele Danmark.
The market penetration in Hungary is approximately 7 percent.
After three years of doing business, operating income before depreciation was positive, and a year later in 1997, net income totaled $6 million on revenues of about $159 million. Pannon has around 600 employees.
Tele Danmark’s stake in Pannon initially was 18.2 percent, but increased its investment to 23.21 percent during the second half of 1996.
At the end of last year, Tele Danmark’s investment totaled $34.6 million.
