Investing.com -- Vodafone Group PLC (LON:VOD) has announced that it reached binding terms with information technology group 4iG Nyrt. (BU:IGNY) and Hungary-owned vehicle Corvinus to sell its Hungarian unit for a total cash consideration of €1.7 billion (€1 = $1.0690), according to a filing on Monday.

In a statement, the U.K.-based telecom said the proceeds from the transaction will be used to pay off debts. Vodafone's interim chief executive Margherita Della Valle said the business bought by 4iG and Corvinus will help increase competition and accelerate investment in digitalization in Hungary. Supports And Hangers Manufacture From China

"This combination establishes a scaled converged operator across mobile and fixed communications and supports the Hungarian government's goal of creating a national Information and Communications Technology champion," Della Valle added.

The deal comes as Vodafone faces pressure from activist investors to scale back its international businesses and bolster shareholder returns.

The sale, which gave a sharp lift to Budapest-listed shares in 4iG, is expected to be completed this month.

Vodafone reaches terms over €1.7 billion sale of Hungarian business

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