Denmark’s incumbent telco TDC has sold its subsidiaries in Finland to local mobile operator DNA in a €154m (US$214m) all cash deal.
The acquisition sees DNA snap up B2B specialists TDC Finland and TDC Hosting to gain scale in the country, and they…
Denmark’s incumbent telco TDC has sold its subsidiaries in Finland to local mobile operator DNA in a €154m (US$214m) all cash deal.
The acquisition sees DNA snap up B2B specialists TDC Finland and TDC Hosting to gain scale in the country, and they have also agreed to cooperate in TDC’s other Nordic markets.
As well as Denmark, where TDC operates a full telecoms suite, the group provides B2B services in Sweden and Norway.
DNA employs around 1,500 people and reported €173m (US$240m) in 2013 turnover for its corporate business. TDC is the second-biggest provider of corporate networks in Finland, where it employs roughly 250 people and generated €93.6m (US$130m) in turnover last year, which is about 23% of its consolidated turnover.
DNA CEO Jukka Leinonen said: “The acquisition of TDC’s Finnish subsidiaries and the strategic partnership with TDC significantly strengthen DNA’s position in the corporate market. In addition, DNA and TDC’s service offering, geographical coverage and expertise clearly complement each other.”
TDC CEO Carsten Dilling earlier this month outlined the group’s strong focus on Demark, where it provides telephony, broadband, cable TV and B2B services, in an interview with TelecomFinance.
But he said prices were low in the country and that the market had “one operator too many”.
Following the sale, TDC said it will continue to deliver services in Finland through its strategic cooperation agreement with DNA.
The operator plans to use around DKr500m (US$93m) from the sale to invest in profitable growth initiatives over 2014-15, while part of the proceeds will pay down debt to maintain an unchanged leverage ratio post the divestiture.
It expects the deal will be approved by the Finnish Competition and Consumer Authority within a month.
