Liberty Global, Inc. ("Liberty Global") (Nasdaq: LBTYA, LBTYB) announced Friday July 22, 2005 that its European subsidiary, UPC Broadband, has reached an agreement to acquire from a group of Romanian entrepreneurs, foreign investors and AIG New Europe Fund, 100% of one of Romania's largest broadband telecommunications operators, Astral Telecom SA ("Astral").
Astral currently serves approximately 890,000 video, voice and data revenue generating units (RGUs). Liberty Global already operates in other parts of the country through UPC Romania with over 360,000 RGUs.
Liberty Global will acquire 100% of the shares of Astral for a price of $404.5 million, which together with the anticipated net debt at closing of $12 million, represents approximately 7.8 times estimated 2005 operating cash flow before network and operational synergies.
The transaction is subject to approval by the Romanian competition authorities and is expected to close in the fourth quarter of 2005.
Mike Fries, President and Chief Executive Officer of Liberty Global, said, "This acquisition extends our significant footprint in Central & Eastern Europe, where we currently generate our strongest revenue and operating cash flow growth. Astral has a major presence in the Romanian capital city of Bucharest, and has upgraded over 50% of its network to support advanced broadband voice and data services. If approved, this transaction will accelerate our investment in the balance of Astral's and UPC's networks."
Liberty Global, Inc. owns interests in broadband distribution and content companies operating outside the continental U.S., principally in Europe, Asia, and the Americas. Through its subsidiaries and affiliates, Liberty Global is the largest broadband cable operator outside the United States in terms of subscribers. Based on the Company's consolidated operating statistics at March 31, 2005, Liberty Global's networks reached approximately 23.0 million homes passed and served approximately 14.3 million revenue generating units, including approximately 10.4 million video subscribers, 2.3 million broadband Internet subscribers and 1.6 million telephone subscribers.
