Romanian cable and DTH operator RCS/RDS held an EGM in late December to discuss raising fresh funds through the launch of a new bond issue of up to E200m.
The proceeds raised would mainly be used to reduce the company’s debt, which at the end of 2008…
Romanian cable and DTH operator RCS/RDS held an EGM in late December to discuss raising fresh funds through the launch of a new bond issue of up to E200m.
The proceeds raised would mainly be used to reduce the company’s debt, which at the end of 2008 stood at E566m. The operator has also been linked to possible consolidation opportunities in recent times, including a bid for Bulgarian cable TV firm FiberNet Communications.
Further details on the bond have not yet been released, although local reports suggested that the notes would have a maturity of no more than 10 years.
RCS/RDS first mooted a new financing back in October when it revealed that it was planning on raising around E60m through either a capital increase from shareholders or the conversion of debt into shares.
RCS/RDS was founded in Romania in 2005 following the merger of Romania Cable Systems (RCS) and Romanian Data Systems (RDS), but operates across much of the Eastern European market. The company provides satellite TV, cable TV, broadband internet and mobile and landline telephony services, and is today the largest cable network and DTH platform operator in Romania.
.. bolsters increases Hungarian presence
RCS/RDS has moved to increase its presence in the Hungarian TV market, snapping up a 32% stake in Hungarian cable TV firm TvNetWork for an undisclosed amount, estimated to be around E5m given the latter’s market capitalisation of E18m.
The Romanian media group, which made the purchase via its Hungarian subsidiary Digi Telecommunications, acquired the holding from existing shareholders Finatech (13.23%) and IT System-Info (18.61%). RCS/RDS is widely expected to further increase its stake over the next few months.
TvNetWork was founded in October 2000 and listed on the Budapest Stock Exchange in August 2006.
