Netcity, which main asset is Bucharest’s optical fiber network of over 1,000 kilometers, is targeted by many investors, including local communications operators. The interested investors in the takeover transaction contacted some local banks to find financing, according to ZF.
Netcity Telecom and UTI group’s representatives could not be contacted by the time of publishing this news.
In 2014, Netcity Telecom posted a turnover of 40.6 million lei (nearly EUR9 million), up 12.6% from 2013. The company’s net profit was at RON10.9 million, double from a year before.
This summer, Netcity blocked the expansion works of the optical fiber network covering less than 15% of Bucharest-based buildings, on the backdrop of disputes with the regulatory authorities (the Competition Council and the Communication Regulatory Authority), which settled the company access tariffs to the network that would render the project unsustainable.
“Our desire is to solve the regulatory problems until the fall, to be able to resume the investment,“ Adrian Florea, general manager with Netcity told ZF in June. He accused then the authorities they issued the regulations without “correctly understanding“ the market.
(English version by Manuela Panescu)