CVC picks up Sunrise for $3.25bn

CVC’s purchase of the Swiss telecoms company provides a partial exit for Blackstone, KKR, Permira and Providence.

Private equity-backed Danish telecoms operator TDC has sold Sunrise Communications to CVC Capital Partners for CHF 3.3 billion (€2.5 million; $3.25 billion).

TDC is 88 percent owned by a private equity consortium comprised of Apax Partners, The Blackstone Group, Kohlberg Kravis Roberts, Permira and Providence Equity Partners. In 2006 the firms paid approximately €10 billion for a majority shareholding in the company, which  is listed on the Copenhagen stock exchange.

CVC’s acquisition will be financed with approximately 33 percent equity, and 66 percent debt, according to a spokesman for CVC.

Equity financing will be provided by Fund V, which closed on €10.7 billion in 2009, and is now 35 percent

[The deal] demonstrates CVC’s commitment to expand its activities in the telecommunications sector



The transaction is expected to close in the fourth quarter and “demonstrates CVC’s commitment to expand its activities in the telecommunications sector”, according to a statement.

In April CVC acquired a 35 percent stake in R, a Spanish cable operator estimated to be worth €675 million; and in 2006 the firm increased its holdings of PBL Media, an Australian media company, to 75 percent from 50 percent for $515 million. 

TDC has owned Sunrise for nearly a decade, during which Sunrise invested more than CHF 2 billion in mobile and fixed infrastructure in Switzerland, according to a statement.

The deal follows TDC’s first attempt to sell Sunrise to France Telecom earlier this year. Talks collapsed after the Swiss Competition Commission blocked the French firm from attempting to merge Sunrise with its Orange mobile unit.

Deutsche Bank and BNP Paribas were advisors to CVC Capital Partners, while Morgan Stanley and UBS advised TDC.