Danish incumbent TDC is reported to be considering making an offer for Swedish cableco Com Hem, following its recent acquisition of Norwegian cable operator Get.
TDC is looking to expand across the region and is sounding out banks to fund a deal,…
Danish incumbent TDC is reported to be considering making an offer for Swedish cableco Com Hem, following its recent acquisition of Norwegian cable operator Get.
TDC is looking to expand across the region and is sounding out banks to fund a deal, sources familiar with the matter told Reuters.
Com Hem was listed on the Nasdaq OMX Stockholm in June, raising SKr6.24bn (US$939m) for its private equity owner BC Partners, which still holds 47.7% of the cableco.
Com Hem’s shares priced at SKr58, higher than the SKr57 its stock opened at today. Following the TDC report, Com Hem’s stock rocketed up to SKr64.05 – a more than 12% increase – before dropping down to around 8% up on the start of the day, as TelecomFinance went to press.
The cableco’s market capitalisation is sitting at around the SKr11.8bn (US$1.56bn) mark.
Representatives from both TDC and Com Hem declined to comment on the report.
TDC held talks with Com Hem earlier this year before the cable operator’s IPO. A tie-up has been discussed on and off since, the report said.
TDC bought Get, which was previously linked to a sale to Com Hem, in September for NKr13.8bn (US$2.16bn).
The Danish operator has previously been considered as more of a target in Nordic consolidation than a buyer as it does not have the financial clout of larger regional operators such as Telenor, TeliaSonera and Tele2.
The Nordics moved closer to consolidation this week as TeliaSonera and Telenor agreed to pool their Danish mobile assets into a joint venture. However, earlier this week, the Norwegian regulator raised concerns about TeliaSonera and Tele2’s bid to merge their operations in the country.
