GMT and Mid Europa exit Invitel(2)

Hungarian Telephone & Cable has bought Invitel, a national telecoms business, for €470 million.

Mid Europa Partners and GMT Communications Partners have sold Invitel, Hungary’s second biggest fixed line telecoms operator, to Hungarian Telephone & Cable for €470 million ($641 million). The two firms bought Invitel from Vivendi International Telecom for €325 million in 2003.

Under private equity ownership, the business’ EBITDA increased from €59.1 million in 2002 to €82.4 million in 2005.

Mid Europa Partners invests in central and eastern European companies and has more than €1.1 billion under management. The firm, which has offices in London, Budapest and Warsaw, is currently investing its second fund, which closed in January 2006 on €650 million.

The firm recently bought Baltic mobile operator Bité from TDC for €450 million. It also bought back Polish media and telecommunications business Aster City Cable from Lion Capital for €412 million in 2005. It had previously co-owned the company with Lion Capital.

GMT Communications Partners invests in European companies in the communications sector and is based in London. It has managed total capital of €700 million since 1992.