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UK's GMT and US AIG finalise Vivendi Telecom Hungary deal

UK GMT Communications Partners and US AIG Emerging Europe Infrastructure Fund have finalised their acquisition of Hungarian fixed line telecommunications operator, Vivendi Telecom Hungary (VTH).

The E325m transaction is one of the largest leveraged buy-outs to have taken place in Central and Eastern Europe.

VTH has an extensive residential and commercial customer base and is one of the most important alternative infrastructure providers in Hungary. The telecom company reported annual revenues in 2002 of E176m.

GMT and AIG intend to launch an extensive investment programme to support the development of VTH's growth outside its traditional areas of operation.

GMT specialises in the European communications sector and is currently investing from it fourth fund. It has made 25 investments in 12 countries since it inception in 1992. The firm closed its latest fund of E365m at the end of 2000.

The AIG Global Emerging Markets Fund invests alongside AIG Global Investment, itself a wholly owned subsidiary of American International Group. The fund invests in emerging markets in Asia, Latin America, Central Europe and the Middle East.

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