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TDC owners begin strategic review
24 November 2009
The private equity owners of Denmark’s TDC have started a strategic review that may lead to their selling part of the company
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[Denmark]
[TDC]
[private equity]
[NTC]
Comment: It’s clear that part of all of TDC is likely to be up for sale at some time in the near future. Expect visiting delegations from rival European operators — Deutsche Telekom or France Telecom, perhaps?
The private equity owners of Danish telecoms operator, TDC, have commenced a review of strategic options for the company. The holding company, Nordic Telephone Company, is a group of private equity firms holding about 88% of TDC, which was acquired in 2006.
NTC, which is owned by funds controlled or advised by Apax Partners, Blackstone, Kohlberg Kravis Roberts, Permira and Providence Equity Partners, purchased TDC for about $13.5 billion. It is in talks with banks to discuss selling part of TDC.
The bankers are urging buy-out firms to plan an opening of the initial public offering window and to return cash to their investors.
Since its leveraged buyout, TDC has cut its debt by half, slashed jobs and divested assets, including its interest in Polish mobile-phone services provider, Polkomtel, and its Hungarian phone and cable unit.
TDC — originally Tele Danmark — was created in 1990 from regional operators and privatised in 1994. Ameritech — later SBC, a constituent of today’s AT&T — had a controlling share from 1997 to 2004. Private equity investors bought most of the company in 2005 through a public tender offer via NTC. GTB
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