Astral shareholders collect their $407m from UPC

UPC has become the largest domestic cable and satellite communications company, with nearly 1,280,000 customers. It is also the largest American investment in Romania now that the Competition Council has approved the acquisition of rival Astral Telecom. UPC sources verified that the Astral shareholders had received the 407 million dollars, representing the value of the deal. Astral was started in the early 1990s by a group of businessmen from Cluj, including Horia Ciorcila, the chairman of Banca Transilvania, with a 4.29% stake in the company. A further 20% in Astral was held by AIG New Europe Fund. As soon as the deal was completed, Astral”s chief executive, Aurel Costea, announced his departure. The new company will be run by US-born Richard Anderson, the current chief executive of UPC Romania. An interim management board, made up of managers from the two companies, will work on the plans to integrate the two businesses. The next step to be taken by UPC Romania and Astral Telecom is the legal merger of the two entities, which is expected to take between 12 and 18 months to complete. As a result of the merger, UPC will climb from third to first place on the domestic market for cable companies, meaning that RDS&RCS – a company it unsuccessfully tried to take over – will become its main competitor. ZF