Mega-firms to reap up to $3.7bn in TDC listing

Apax, Permira, Providence, Blackstone and KKR will partially exit the Danish telecoms company they took private for $12bn in 2005.

A consortium of private equity firms including Apax Partners, The Blackstone Group and Kohlberg Kravis Roberts has publicly offered up to 241.5 million of shares in Danish company TDC, worth approximately $2.2 billion.

The investor syndicate, which also includes Providence Equity Partners and Permira, originally took TDC private in 2005, purchasing 88.2 percent of the company for approximately $12 billion. In addition to the share offering, the consortium is selling 176 million shares of TDC back to the company, earning the group roughly $1.5 billion. The buyback is expected to close by 15 December.

The majority of the proceeds of the partial sale will be used to repay outstanding debt held by the private equity consortium.

Between 210 million and 241.5 million TDC shares will be placed on the Danish Stock Exchange, depending on whether an over-allotment option of 31.5 million shares is exercised. The sale and buyback leaves the consortium with about a 55 percent stake in TDC, down from 88.2 percent after the purchase in 2005.

The 88.2 percent figure was short of the 90 percent required by Danish law to squeeze out minority shareholders and take full control of the company. Danish pension fund ATP said at the time that it did not consider the consortium’s offer to be sufficiently attractive to sell its 5.5 percent stake.