TDC Agrees to Sell its Swiss Unit Sunrise for 3.3 Billion Swiss Francs
Analysts presumed that Denmark's TDC is going to boost its shares by 6% and ready to offer its stocks. Swiss unit Sunrise of TDC will also be sold as per the deal for 3.3 billion Swiss francs.
The Company confirmed Reuters on Thursday that on the advice of private equity firm CVC Capital Partners they have decided to sell Sunrise to funds.
TDC has signed a deal after the Sunrise was sold to the France Telecom's Swiss unit Orange by the Danish telecom operator. In April, Swiss regulators blocked the Swiss unit Orange, claiming that a two-player market will emerge through it.
TDC has been preparing to control its private equity owners for the stock offer and the sale is a part of its strategy to boost the position of the Company.
Sydbank analyst Morten Imsgaard, "I see a reintroduction on the stock market of all shares as the most likely way for the current owners to exit, and they have now cleared the last hurdle for that as they now have a focus on the Nordic region only”.
He also said that depending upon the overall growth of the economy and the condition of market, a reintroduction is likely to happen this year.
Private equity firms including Blackstone Group, Kohlberg Kravis Roberts, Apax Partners, Providence Equity Partners and Permira Advisers are the main owners of TDC, holding as much as 90% of the stock.