Major Romanian cable operator RCS&RDS to purchase key rival

Major Romanian cable operator RCS&RDS to purchase key rival
By bne IntelliNews December 2, 2019

The cable TV and fixed internet division of Romanian telecom group Digi Communications, RCS&RDS, which already holds close to 50% of the local market for such services, has reached an agreement to use the networks owned by the largest local independent cable operator Digital Cable Systems (operating under the AKTA brand) and AKTA Telecom — with the assets to be purchased later pending a more complex procedure.

The shares of the two would be later purchased by investment vehicle ATTP Telecommunications, to be later purchased by RCS&RDS. The operations need to be approved by the Competition Council.

RCS&RDS will pay a rent of up to €77mn for the initial three-year period of this contract.

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 for paying a rent in the amount agreed by the parties. According to these agreements, RCS&RDS will provide a number of approximately 540,000 clients internet access, cable television, fixed and mobile telephony services.

Digital Cable Systems is controlled by Asian investment fund Pinebridge (65%) while local group Clever Media part of LOOK TV group is the second largest shareholder. Meanwhile, Digi Communications, which is listed on the Bucharest Stock Exchange, is controlled by Romanian investor Zoltan Teszari.