Deal summary
TDC, the Danish telecommunications provider, announced that its 64% (62.5% on a fully diluted basis) controlled subsidiary Hungarian Telephone and Cable Corp. (“HTCC”), signed a Share Purchase Agreement to acquire 95.7% of the share capital of the Austrian-based Memorex Telex Communications AG (“Memorex”) one of the leading alternative bandwidth providers in Central and Eastern Europe with the largest fixed-line infrastructure in the region.
- The total consideration amounted to EUR 90.5 million (app. USD 130.3 million).
- The consideration included the assumption of EUR 60.2 million (app. USD 86.7 million) in debt and a cash consideration of EUR 30.3 million (app. USD 43.6 million) to the shareholders of Memorex. The consideration will be financed solely by HTCC.
- Following closing, HTCC intended to acquire the remaining shares in Memorex in accordance with Austrian law, resulting in its ownership of 100% of the share capital.
- TDC expected the acquisition to have a positive impact on TDC’s EBITDA for 2008 and onwards
About TDC
Tele Denmark Communications A/S is the leading provider of communications solutions in Denmark with a strong Nordic focus. In the Nordic region TDC has four business units: Business Nordic, Fixnet Nordic, Mobile Nordic and YouSee. TDC’s activities outside the Nordic Region comprise amongst others Sunrise, a leading telecommunications provider in Switzerland, and HTCC, a leading telecommunications provider in Hungary. TDC was partly privatized in 1994 and fully privatized in 1998. Nordic Telephone Company ApS owns 87.9% of TDC, with the remainder of the shares held by individual and institutional shareowners.
About Memorex Telex Communications AG
Memorex Telex Communications AG (“Memorex”) was one of the leading alternative bandwidth providers in Central and Eastern Europe with the largest fixed-line infrastructure in the region. Memorex was based in Austria.
