Private Equity Groups Continue Reducing Stake in Denmark's TDC
Published on: 28th Nov 2012
Note -- this news article is more than a year old.
Denmark based telco, TDC has announced that one of its shareholders is selling a 10% stake in the company to institutional investors.Â
In a statement, TDC said that NTC is to sell approximately 80 million shares in an accelerated bookbuilt offering, corresponding to approximately 10% of TDC's share capital
TDC will not receive any proceeds from the sale, which is expected to raise around USD540 million.
In 2006, a group of private equity firms formed a joint-venture, Nordic Telephone Company (NTC) to buy TDC for a price of about EUR9.1 billion. The company bought 88% of the shares, but failed to buy more than 90% of the shares and was thus unable to remove the company completely from the Copenhagen Stock Exchange.
In 2010, NTC started reducing its stake through sales onto the stock exchange, bringing its holding down to 43%.
Following the latest sale, NTC and certain related parties will own approximately 33% of the outstanding shares of TDC (exclusive of treasury shares).
NTC and its selling shareholders have agreed on a customary 90 day lock-up period from the closing of the sale, subject to certain customary exceptions.