Digi Communications N.V. Announces the Publishing of Update to the Investigation by the Romanian National Anti-Corruption Directorate
Digi Communications N.V. ("Digi" or the "Company") announces that on July 31, 2017 it published an Update to the investigation by the Romanian National Anti-Corruption Directorate.
In connection with the investigation triggered by the Romanian National Anti-Corruption Directorate (“DNA”), which we have previously disclosed to the market and to our investors in the initial public offering prospectus dated 26 April 2017, in the supplemental prospectus dated 8 May 2017 (together, the “Prospectus”), as well as in the subsequent public reports, we inform you that, on 25 July 2017, RCS & RDS S.A. (the Company’s subsidiary) was indicted by the DNA in connection with the offences of bribery and money laundering, INTEGRASOFT S.R.L. (one of RCS & RDS S.A.’s subsidiary) was indicted for the offence of accessory to money laundering, while Mr. Mihai Dinei (member of the Board of directors of RCS & RDS S.A.), was indicted by the DNA in connection with the offences of accessory to bribery and accessory to money laundering.
Additionally, on 25 July 2017, the DNA confirmed that it attached two real estate assets pertaining to RCS & RDS S.A. to secure an amount of up to Lei 13,714,414 (approximately EUR 3 million). Should RCS & RDS S.A. be found guilty for having committed the alleged criminal offences by a final court resolution, it is possible that enforcement be made against these assets up to the value of the secured amount.
Subsequently, on 31 July 2017, Mr. Serghei Bulgac (Chief Executive Officer of the Company and General Management and President of the Board of Directors of RCS & RDS S.A. – the Company’s subsidiary), was indicted by the DNA in connection with the offence of money laundering.
We restate that we will continue to fully cooperate with the investigation and believe that RCS & RDS S.A., INTEGRASOFT S.R.L. and their current and former officers have acted appropriately and in compliance with the law.
We do not expect these measures to interfere with the Company’s, RCS & RDS S.A.’s or any of their subsidiaries’ business in any material manner.
About Digi Communications NV
Digi is the parent holding company of RCS & RDS, a leading provider of pay TV and telecommunications services in Romania and Hungary. In addition, RCS & RDS provides mobile services as an MVNO to the large Romanian communities living in Spain and Italy.
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