Digi Communications NV: The closing of the acquisition by the Company’s Hungarian subsidiary, DIGI Távközlési és Szolgáltató Kft., of the Hungarian telecommunications operator Invitel Távközlési Zrt.

Digi Communications NV: The closing of the acquisition by the Company’s Hungarian subsidiary, DIGI Távközlési és Szolgáltató Kft., of the Hungarian telecommunications operator Invitel Távközlési Zrt.

BUCHAREST, Romania, 30-May-2018 — /EuropaWire/ — The Company would like to inform its shareholders that, as a result of the completion of the conditions to closing provided in the share-purchase agreement (“SPA”) signed on 21 July 2017 between DIGI Távközlési és Szolgáltató Kft. (“Digi HU”), as the purchaser, and Ilford Holding Kft. and InviTechnocom Kft. (former name Invitel Technocom Távközlési Kft.), acting as sellers (the “Sellers”), the acquisition by Digi HU of shares representing in total 99.998395% of the share capital and voting rights of Invitel Távközlési Zrt. (the “Target”) was finalized today, 30 May 2018.

The total consideration paid by Digi HU to the Sellers for the acquisition of shares in the Target was of approximately EUR 135.4 million.

The Company welcomes the addition to the Digi group of a key Hungarian telecommunications operator positioned as the second-largest incumbent fixed line telecommunications and broadband internet services provider in the residential and small business customers segment in Hungary. The Target offers an extensive portfolio of services to residential and small business customers, including a variety of multimedia and entertainment services such as interactive, digital and HD television, fast internet offerings and fixed telephony services across its regional networks.

This transaction will allow the Company’s group to consolidate its position on the Hungarian telecommunications market, and to expand its customer reach and experience, as well as to create better operational synergies.

For the year 2017, the Target had a revenue of HUF 25,769 billion (approximately EUR 83.3 million) and an EBITDA of HUF 7.550 billion (approximately EUR 24.4 million). At 30 April 2018, the Target had 695,099 RGUs (revenue generating units) in cable TV, broadband internet and fixed telephony. In May 2018, the Hungarian Competition Council cleared this transaction subject to the following commitments having been undertaken by Digi HU: Digi HU to sell within six months the network the Target currently holds in 16 Hungarian settlements, as well as to refrain from extending the lease contracts in place with independent fixed-line telecom networks in 23 Hungarian settlements.

For other relevant information regarding the SPA and the transaction, we invite the market and our investors to also refer to the announcement issued by the Company to the market and to its investors on 21 July 2017.

For additional information, please contact us at ipo.relations@digi-communications.ro.

About Digi Communications NV

Digi is the parent holding company of RCS & RDS, a leading provider of pay TV and telecommunications services in Romania and Hungary. In addition, RCS & RDS provides mobile services as an MVNO to the large Romanian communities living in Spain and Italy.

Contacts

For Digi Communications NV
Phone no: +4031 400 4444
investor.relations@rcs-rds.ro

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