May 9 (SeeNews) - US TV and broadband company Liberty Global said on Wednesday it has entered into a definitive agreement to sell its operations in Romania, Czechia, Hungary and Germany to Vodafone Group for 18.4 billion euro ($22 billion).
The four businesses represent approximately 28% of Liberty Global’s consolidated 2017 operating cash flow, excluding its share in VodafoneZiggo joint venture in the Netherlands, Liberty Global said in a press release.
The transaction will be notifiable to the European Commission for regulatory approval, which is expected to occur mid-2019.
In Romania, Liberty Global operates through its pan-European telecommunications UPC Europe.
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"It is an important strategic moment in the history of UPC Romania," UPC Romania CEO Mihnea Rădulescu said in a separate statement on Wednesday.
"Joining UPC Romania's operations with those of Vodafone Romania will lead to the creation of an important player with converging services that will increase competition in the telecom market, bringing multiple benefits to both residential and business customers - more value, more choice and more attractive. It will also help accelerate the pace of investment in the telecom market," Radulescu added.
Founded in Cluj-Napoca as Astral Telecom S.A. in 1993, UPC Romania is now one of the country's largest providers of TV, Internet and fixed-line telephone services.
UPC Europe bought Astral Telecom for $420 million in 2005.
According to financial results published on Wednesday, UPC Romania's first quarter revenues rose 7% year-on-year to 190.7 million lei ($49 million/41 million euro).
The total number of the company's subscribers was 2.426 million at end-March, up 6% on the year.
UPC Romania's net revenue rose 6.5% to 734 million lei in 2017.
Liberty Global is the world’s largest international TV and broadband company, with operations in 11 European countries under the consumer brands Virgin Media, Unitymedia, Telenet and UPC.
After completion of the transaction, Liberty Global will continue to operate in the United Kingdom, Ireland, Belgium, Switzerland, Poland and Slovakia.
Vodafone telecom group has mobile operations in 26 countries, partners with mobile networks in 49 more, and has fixed broadband operations in 17 markets.
(1 euro=4.6496 lei)