January 4 (SeeNews) - Dutch-based Digi Communications [BSE:DIGI], majority owner of Romanian company RCS&RDS, said it has completed the sale of its operations in Hungary to Hungarian IT and ICT solutions provider 4iG for 624.98 million euro ($709.6 million)
Under the deal, 4iG acquired 100% of Digi Tavkozlesi Szolgaltato Ltd. (Digi Hungary) and its subsidiaries, Invitel Ltd. and I TV Ltd, Digi said in a statement filed with the Bucharest Stock Exchange, BVB, on Monday evening.
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Digi Communications and its subsidiaries will use the proceeds from the sale to repay debt as well as make further investments in their markets of operation and potentially new markets in Western Europe.
Digi Hungary is a leading telecommunications service provider in Hungary, with 23 years of experience and a broad service portfolio covering cable TV, fixed internet and data, mobile telecommunication services, fixed-line telephony and Direct To Home services, according to the statement. It serves more than 1.1 million subscribers nationwide and had over 2.5 million revenue generating units as of end-2020.
In 2020, the group’s consolidated sales revenue in Hungary was 70 billion forints ($227 million/ 193 million euro) and its adjusted EBITDA reached 19 billion forints.
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 a component of the BVB's blue-chip BET and BET-TR indices.
Shares of Digi traded 9.48% higher at 41.7 lei ($9.57/ 8.43 euro) on the BVB as at 0937 CET on Tuesday.
(1 euro=4.9474 lei)