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BUCHAREST (Romania), December 2 (SeeNews) - Digi Communications [BSE: DIGI] said that its Romanian subsidiary RCS&RDS has entered into deals worth a total of 77 million euro ($84.7 million) to operate the networks of local peers Digital Cable Systems, AKTA Telecom and ATTP Telecommunications.
Under these agreements, RCS&RDS will operate the electronic communications networks of the three companies and will provide electronic communications services to the clients, in exchange for the payment agreed by the parties, Digi said in a statement filed with the Bucharest Stock Exchange, BVB, on Friday.
RCS&RDS will provide some 540,000 internet access, cable television, fixed and mobile telephony services. The agreements were concluded for an initial duration of three years, which can be extended at the option of either party for a new term of three years.
The deals are pending approval from Romania's anti-trust authority.
The operation of the networks, respectively the purchase of assets will take place if the following conditions precedent are met: ATTP Telecommunications cumulatively acquiring the required rights in order to transfer the use of the assets that are the subject matter of the agreement, the majority of the shares in Digital Cable Systems and the majority of the shares in AKTA Telecom.
"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," Digi said.
RCS&RDS, founded by Romanian businessman Zoltan Teszari, comprises two companies - Romanian Cable Systems (RCS) founded in 1994, and Romanian Data Systems (RDS) founded in 1998. Its parent company, Cable Communication Systems, now Digi Communications N.V., indirectly operates telecommunications groups in Hungary, Spain and Italy through RCS&RDS.
Digi is part of BVB's blue-chip BET and BET-TR indices.
Shares of Digi traded flat at 31.9 lei on the BVB as at 0900 CET on Monday.