Danish incumbent TDC has announced plans to acquire local MVNO Onfone for approximately DKK300m (E40m).
Depending on the final estimate of Onfone’s debt, TDC expects to pay DKK288m- DKK313m (E38m-E42m) in cash for the group. The companies anticipate…
Danish incumbent TDC has announced plans to acquire local MVNO Onfone for approximately DKK300m (E40m).
Depending on the final estimate of Onfone’s debt, TDC expects to pay DKK288m- DKK313m (E38m-E42m) in cash for the group. The companies anticipate completing the deal before the end of May.
Announcing the plan on 11 May, TDC CEO Henrik Poulsen said: “We have been following Onfone closely from the sidelines, but with no plans of acquiring the company. Much to our surprise, we were presented with the prospect of a good deal a few days ago and decided to seize the opportunity.”
As a result of the transaction, Onfone’s 170,000 customers will be transferred from Norwegian mobile operator Telenor’s network to one owned by TDC.
Delivering a departing shot towards its former network, Onfone CEO Morten Strunge said in a statement: “We want to secure our customers the best. We are therefore very pleased with the agreement that we have now entered into with a very robust group like TDC.
“Transferring to TDC’s network will also give our customers a better network experience.”
Onfone, which was founded by Strunge in 2006, published DKK24m (E3.2m) in revenues and DKK13m (E1.7m) in EBITDA for the 2009/2010 financial year.
