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TDC private equity owners trim their stake

by Renee Cordes  |  Published February 14, 2012 at 11:59 AM
TDC_227x128.jpgTDC A/S's private equity owners have sold shares worth about 5.53 billion Danish kroner ($986 million) in Denmark's largest telecommunications company, trimming their combined stake from 59.1% to about 43.3%.

Shares in Copenhagen-based TDC shed 4.58% on the Nasdaq OMX Nordic exchange to trade at Dkr43.13 Tuesday, Feb. 14, putting the current market capitalization at just below Dkr35.6 billion.

Earlier in the day, the stock fell as low as Dkr42.76 in its biggest decline in more than six months following an announcement that "certain investors" had sold about 128 million shares in TDC in a share sale arranged by Morgan Stanley.

A source close to the transaction said that shares were sold at Dkr43.26, or 4% below TDC's Monday closing price of Dkr45.20.

The shares were sold by the NTC Holding GP & Cie. consortium (originally the Nordic Telephone Co.), which comprises buyout shops Apax Partners LLP, Blackstone Group LP, Kohlberg Kravis Roberts & Co. LP, Permira Advisers KB and Providence Equity Partners Ltd.

It was not immediately clear if each of the buyout shops had sold shares in the telecom, since the announcement issued by Morgan Stanley referred only to the consortium as a whole. Among TDC's other shareholders is Government of Singapore Investment Corp. Pte. Ltd., which owns more than 5% of shares.

The consortium picked up TDC in 2005 for $15.3 billion but couldn't convince Danish pension fund ATP to sell its 5.5% investment, which prevented them from reaching the 90% threshold needed for a squeeze-out. They ended up with 88% and started selling down their stake in 2010, initially reducing it to below 60%.

Earlier this month, TDC said it is expecting 2012 revenue of between Dkr26 billion and Dkr26.5 billion, little changed from Dkr26.3 billion received in 2011. It has also said it will pay a divided of Dkr2.17 per share next month.

TDC's fourth-quarter 2011 earnings fell below expectations at Dkr704 million in profit from continuing operations. In the mobile sector, the company gained 287,000 additional subscribers in 2011.

TDC traces its roots to 1882, with the founding of Kjobenhavns Telefon-Aktieselskab just seven years after Alexander Graham Bell invented the telephone. In mid-2011, the company had a total of 8.99 million customers.

TDC announced Monday that it is suspending its share buyback program of up to Dkr750 million that had been announced Feb. 3. The telecom plans to restart it once the block sale has been completed.

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Tags: Denmark | PE | TDC A/S
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Renee Cordes

International correspondent, Brussels

Renee Cordes is an international correspondent in Brussels, covering EU regulatory issues as well as corporate news. Contact



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