UPC to Acquire the Largest Broadband Cable Operator in Romania

UPC Broadband, a unit of Liberty Global, will acquire Astral Telecom, one of Romania's largest broadband telecommunications operators, from a group of Romanian entrepreneurs, foreign investors and AIG New Europe Fund. 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.


Astral currently serves approximately 890,000 video, voice and data revenue generating units (RGUs). 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. Liberty Global already operates in other parts of the country through UPC Romania with over 360,000 RGUs.


The transaction is subject to approval by the Romanian competition authorities and is expected to close in the fourth quarter of 2005.