MYTAY Magyar Telekom Telecommunications Plc (PK)

BUDAPEST--Magyar Telekom Nyrt. (MTELEKOM.BU), Hungary's largest telecommunications company by market share, said Friday that it had amended its real estate agreement with Hungarian real estate management company Wing.

MAIN FACTS:

- Under an agreement signed May 19 2015, Magyar Telekom and Wing Group had agreed on a forward sales contract on the company's three main office buildings in Budapest. What has been amended is that now only two of the main office buildings will be covered by a forward sales agreement and the third building--Infopark 'G' building--will be sold on a cash basis to a third party appointed by Wing, but also leased back to Magyar Telekom until the handover of the new headquarters.

- Although the about 4 billion forint ($14.2 million) profit deriving from these three sales transactions remains unchanged over the period, the new deal structure does affect the timing of the cash inflows with a higher-than-planned cash inflow of EUR25.5 million ($28.1 million), or about HUF8 billion, in the first half of 2016 but lower in 2018.

- The rental cost of Infopark 'G' induces an about HUF700 million annual increase in rental costs for the company over the next three years.

Write to Margit Feher at margit.feher@wsj.com

(END) Dow Jones Newswires

March 11, 2016 07:33 ET (12:33 GMT)

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