In a transaction valuing its Norwegian businesses at NOK 21.0 billion (EV/EBITDA multiple of 12.1), TDC Group divests Get and TDC Norway to Telia Company. The divestment will allow TDC Group to focus fully on delivering on the vision for the Danish business.
TDC Group’s vision is to offer high speed and high-quality connectivity to all Danes through best-in-class fiber and mobile networks, whilst continuing to develop and offer innovative digital products and solutions to businesses and consumers, thus supporting the digitisation of Denmark.
“During the latest months, we have reviewed our strategic options and developed detailed plans for delivering on our vision. Get and TDC Norway are high quality businesses, but it has become clear that we do not need to own these businesses in order for us to succeed with what is essentially an ambition focused on Denmark,” says Pernille Erenbjerg, Group CEO, TDC Group.
“I am therefore glad that we have come to an attractive agreement with Telia. With the implementation of our NetCo/OpCo organisation, which we announced on June 28 and today this agreement, we are off to a good start in executing on our plans and fulfilling the ambition,” says Pernille Erenbjerg.
The agreement means Telia Company will take over nearly 900 employees and more than 1 million customers (RGUs) with the acquisition of Get and TDC Norway. The agreement itself will have no immediate impact on the customers, whose terms and conditions will remain the same.
“In Telia Company, we have found a good long-term owner for our Norwegian activities.The combination of our strong fiber and cable networks with Telia’s high quality mobile network means that Get and TDC Norway can continue to invest in innovation and further development of converged services, and for TDC Group it means that we can focus fully on delivering on our vision for Denmark,” explains Pernille Erenbjerg further.
“We have reached a good agreement which ensures that our Danish business customers with offices in Norway and our wholesale customers with services in Norway will continue to be served on the same terms as before,” says Pernille Erenbjerg.
The divestment of the Norwegian activities is subject to approval by the Norwegian competition authorities. This is expected to take place during the second half of 2018.
Following completion, parts of the sales proceeds will be applied towards debt reductions with an expectation that the sale will not have a negative impact on TDC Group’s corporate credit ratings. Remaining proceeds may be reinvested in the Danish activities and applied towards further debt reductions.
Facts regarding the transaction:
- TDC Group is selling its Norwegian business, Get and TDC Norway, for NOK 21.0 billion (DKK 16.5 billion) to Telia Company (EV/EBITDA multiple of 12.1)
- In 2014 TDC Group acquired Get for an acquisition price of NOK 13.8, and Get has since 2015 generated a cash flow of more than NOK 2.5 billion
- TDC Group will have a gain after tax of DKK 5.0 billion as a result of the divestment
- The transaction is expected to be approved by the Norwegian competition authorities in the second half of 2018
Facts about TDC Group in Norway:
- In Norway, TDC Group comprises the broadband, mobile and TV provider Get as well as the business line TDC Norway
- Together, the two Norwegian companies have a total of 870 employees
- Get has 428,000 TV customers and 372,000 broadband customers (Q1 2018) and is second largest provider of TV and broadband services to homes in Norway
- In 2017, Get and TDC Norway had revenue of DKK 2.56 billion and DKK 0.65 billion, respectively, and comprised 15% of TDC Group’s total revenue
- EBITDA for Norway reached DKK 1.39 billion in 2017
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TDC Group connects Denmark, and has a clear ambition to facilitate and improve customer access to digital services and content. The company is Denmark’s preferred provider of communication and entertainment services in the home and on the move. YouSee, Telmore, Fullrate and Blockbuster provide its Danish customers with quick and easy access to a wide range of music, film and TV on all platforms, anytime and anywhere. TDC Business is creating tomorrow's growth in both large and small Danish enterprises through providing simple, digital solutions. In Norway, the TDC Group supplies mobile telephony, TV and broadband to Norwegian homes via the company Get, Norway's fastest-growing broadband provider.