White & Case LLP - News - €470M CEE Telecoms Sale Concludes

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€470M CEE Telecoms Sale Concludes

Budapest, January 15, 2007 ... White & Case advised the owners of Invitel Távközlési ZRt. ("Invitel"), including the private equity firms GMT Communications Partners ("GMT"), Mid Europa Partners and senior management of Invitel, in their conclusion of an agreement to sell 100 percent of the share capital of Matel Holdings N.V. ("Matel"), the owner of 99.98 percent of Invitel, to Hungarian Telephone & Cable Corp. ("HTCC") for a total consideration of €470 million.

Each of Mid Europa Partners, GMT and senior management of Invitel is selling a 33.33 percent holding in Matel as part of the transaction. Following the completion of the sale, GMT and Mid Europa Partners will each receive €26 million. The sale is subject to regulatory approvals from the Hungarian and Romanian authorities and is expected to close in the first half of 2007.

Invitel is the incumbent fixed telecommunications services provider in its historical concession areas, which cover approximately 1.4 million people, representing 14 percent of Hungary's population. Invitel also provides fixed telecommunications services as an alternative operator in the remainder of Hungary, through its network covering 16 major urban centres.

HTCC, through its Hungarian subsidiary Hungarotel Távközlési Zrt., is the incumbent fixed telecom service provider in historical concession areas covering seven percent of Hungary's population and also has a nationwide network, predominantly serving business customers in the remainder of Hungary.

"This transaction is the culmination of over four years of strategic advice to GMT, Mid Europa and senior management, including the purchase of Invitel, a bolt-on acquisition by Invitel and high yield bond and PIK Note financings. The transaction is expected to result in the creation of a strong competitor to the incumbent fixed line communications operator in Hungary," explained Rob Irving, lead White & Case partner advising on the transaction.

Advising alongside Rob Irving were associates Edward Keller, Orsolya Szabó and Tibor Szántó.

Mid Europa Partners is the largest private equity firm investing in Central and Eastern Europe. Operating from London, Budapest and Warsaw, Mid Europa Partners advises and manages funds with committed capital in excess of €1.1 billion, and has made investments in 14 companies located in nine countries in Central and Eastern Europe.

GMT Communications Partners is Europe's largest independent private equity group focused exclusively on the communications sector, and has actively invested in the European marketplace for the past decade. GMT has completed 25 investments across 17 countries and has managed a series of successful funds comprising €700 million of capital.

About White & Case
White & Case LLP is a leading global law firm with more than 2,000 lawyers in 35 offices in 23 countries. Our clients value the breadth and depth of our US, English and local law capabilities and rely on us for their complex cross-border commercial and financial transactions and for international arbitration and litigation. Whether in established or emerging markets, the hallmark of White & Case is our complete dedication to the business priorities and legal needs of our clients.

Contact:
James Martin
Media Relations Mgr EMEA, White & Case
44 0 20 7532 2853/ 44 0 7939 012 011

Alexandra Henderson
Media Relations Executive, White & Case
44 0 20 7532 2848

	Press Releases
Expertise Communications and Media Mergers & Acquisitions Lawyers Robert B. Irving Edward L. Keller Orsolya Szabó Locations Budapest	€470M CEE Telecoms Sale Concludes Budapest, January 15, 2007 ... White & Case advised the owners of Invitel Távközlési ZRt. ("Invitel"), including the private equity firms GMT Communications Partners ("GMT"), Mid Europa Partners and senior management of Invitel, in their conclusion of an agreement to sell 100 percent of the share capital of Matel Holdings N.V. ("Matel"), the owner of 99.98 percent of Invitel, to Hungarian Telephone & Cable Corp. ("HTCC") for a total consideration of €470 million. Each of Mid Europa Partners, GMT and senior management of Invitel is selling a 33.33 percent holding in Matel as part of the transaction. Following the completion of the sale, GMT and Mid Europa Partners will each receive €26 million. The sale is subject to regulatory approvals from the Hungarian and Romanian authorities and is expected to close in the first half of 2007. Invitel is the incumbent fixed telecommunications services provider in its historical concession areas, which cover approximately 1.4 million people, representing 14 percent of Hungary's population. Invitel also provides fixed telecommunications services as an alternative operator in the remainder of Hungary, through its network covering 16 major urban centres. HTCC, through its Hungarian subsidiary Hungarotel Távközlési Zrt., is the incumbent fixed telecom service provider in historical concession areas covering seven percent of Hungary's population and also has a nationwide network, predominantly serving business customers in the remainder of Hungary. "This transaction is the culmination of over four years of strategic advice to GMT, Mid Europa and senior management, including the purchase of Invitel, a bolt-on acquisition by Invitel and high yield bond and PIK Note financings. The transaction is expected to result in the creation of a strong competitor to the incumbent fixed line communications operator in Hungary," explained Rob Irving, lead White & Case partner advising on the transaction. Advising alongside Rob Irving were associates Edward Keller, Orsolya Szabó and Tibor Szántó. Mid Europa Partners is the largest private equity firm investing in Central and Eastern Europe. Operating from London, Budapest and Warsaw, Mid Europa Partners advises and manages funds with committed capital in excess of €1.1 billion, and has made investments in 14 companies located in nine countries in Central and Eastern Europe. GMT Communications Partners is Europe's largest independent private equity group focused exclusively on the communications sector, and has actively invested in the European marketplace for the past decade. GMT has completed 25 investments across 17 countries and has managed a series of successful funds comprising €700 million of capital. About White & Case White & Case LLP is a leading global law firm with more than 2,000 lawyers in 35 offices in 23 countries. Our clients value the breadth and depth of our US, English and local law capabilities and rely on us for their complex cross-border commercial and financial transactions and for international arbitration and litigation. Whether in established or emerging markets, the hallmark of White & Case is our complete dedication to the business priorities and legal needs of our clients. Contact: James Martin Media Relations Mgr EMEA, White & Case 44 0 20 7532 2853/ 44 0 7939 012 011 Alexandra Henderson Media Relations Executive, White & Case 44 0 20 7532 2848