Denmark's TDC Accepts US$6.7B Takeover Bid

Ray Le Maistre
News Analysis
Ray Le Maistre, Editor-in-Chief
2/12/2018



The board of Denmark's national operator TDC has accepted a takeover offer worth US$6.7 billion from a consortium comprising Macquarie and a number of pension funds.

The operator had rejected a lower bid only last week, with speculation pitching that bid at around $6 billion: The renewed offer "represents both the most compelling value and the highest transaction certainty benefitting the TDC shareholders," but is contingent on TDC Group scrapping its planned $2.4 billion merger with digital entertainment group MTG Nordic, which was announced at the start of February.

The bid, valued at 50.25 Danish kroner, is a 25.6% premium to the operator's share price on January 31, prior to any takeover or bid speculation. News that the updated bid had been accepted by the board pushed TDC's share price to DKK49.11, up by 12.6% at Monday lunchtime in Copenhagen.

TDC recently announced full year 2017 revenues of DKK20.3 billion ($3.4 billion), down 3.3% from 2016, and a 3.5% dip in EBITDA to DKK8.2 billion ($1.3 billion). TDC operates in Norway as well as Denmark.

TDC isn't the only European incumbent subject to a takeover bid currently, as ambitious French telecoms tycoon Xavier Niel is looking to add Ireland's eir to his growing empire. (See Iliad's Owner Swoops on Ireland's eir.)

Ray Le Maistre, Editor-in-Chief, Light Reading

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