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RCS&RDS to pay up to EUR 77 million to operate the networks of 3 Romanian telecoms for 3 years

BUCHAREST, Romania, 29-Nov-2019 — /EPR FINANCIAL NEWS/ — The Company would like to inform its investors and the market that, on November 28, 2019, RCS&RDS, hereinafter referred to as “Assignee” and Digital Cable Systems S.A., AKTA Telecom S.A., respectively ATTP Telecommunications S.R.L., hereinafter referred together as “Assignors”, concluded agreements (together the „Agreements”) having as subject matter the operation by RCS&RDS of the assets used for providing telecommunication services to residential type customers. Additionally, through the agreement concluded with ATTP Telecommunications S.R.L., RCS&RDS will also become owner of assets consisting of infrastructure, clients etc, upon the fulfillment of the conditions precedents mentioned below.

Under these Agreements, RCS&RDS will operate the electronic communications networks of the Assignors and will provide electronic communications services to the clients, in exchange of the payment by RCS & RDS of a rent in the amount agreed by the parties. According to these Agreements, RCS&RDS will provide a number of approximatively 540 thousand internet access, cable television, fixed and mobile telephony services.

The Agreements are concluded for an initial duration of 3 years, which can be extended at the option of either party for a new term of 3 years. The total amount due as rent or price by RCS&RDS under the Agreements are in maximum amount of EUR 77 million excluding VAT.

The operation of the networks, respectively the purchase of assets will take place if the following conditions precedent are met: (a) the approval of the transaction by the competition authority and (b) ATTP Telecommunications S.R.L. cumulatively acquiring (i) the required rights in order to transfer the use of the assets that are the subject matter of the agreement concluded between ATTP Telecommunications S.R.L. and RCS&RDS, (ii) the majority of the shares in Digital Cable Systems S.A. and (iii) the majority of the shares in AKTA Telecom S.A..

Pursuant to these Agreements, the Assignors intend to provide high quality services at the best prices to their residential type clients. RCS&RDS has all the resources, capabilities and the required knowledge for ensuring the attainment of this objective by exploiting the synergies between its own electronic communications network and the networks which is subject matter of the Agreements.

For details regarding the reports, please access the official website designated of Digi: www.digi-communications.ro (Investor Relations Section/Current Reports).

SOURCE: EuropaWire