Romanian telecom operator RCS&RDS and its Hungarian subsidiary have concluded a EUR 200 million short-term loan agreement with Citibank, London branch, and ING Bank NV.

RCS&RDS is part of Digi Communications, a telecom service provider operating in Romania, Hungary, Spain, and Italy.

The group will use EUR 140 million of this loan to acquire the Hungarian telecom operator Invitel Tavkozlesi Zrt. The loan has a one-year maturity and can be extended for an additional period of six or 12 months.

Digi Communications recorded a net profit of EUR 31.8 million in the first six months of this year, up almost fivefold over the same period last year. The group’s total revenues went up by 12% in the first six months compared to the same period last year reaching EUR 454 million. The operating profit amounted to EUR 56 million during this period, up 52.6% year-on-year.

The group is listed on the Bucharest Stock Exchange and has a market capitalization of EUR 817 million.

editor@romania-insider.com