PE group falls short of 90% TDC target

Private equity consortium NTC has become the controlling shareholder in the Danish telecom business but still faces resistance in its efforts to de-list the company.

Nordic Telephone Company (NTC), a consortium of private equity firms, has fallen short of the 90 percent shareholder acceptance level required to take full control of TDC and de-list the Danish telecom firm from the Copenhagen Stock Exchange.
 
The NTC consortium, comprising Apax Partners, Blackstone Group, Kohlberg Kravis Roberts, Permira and Providence Equity Partners, announced today that it had become the controlling shareholder of TDC after receiving acceptances from 88.2 percent of shareholders for its €10 billion ($12 billion) tender offer. The bid of 382 crowns per share in TDC expired this morning after being extended from January 12.
 
Minority shareholder ATP, a Danish pension fund, had previously said that it did not consider the offer to be “sufficiently attractive” and the 88.2 percent shareholder acceptance is still below the 90 percent required by Danish law to buy out the remaining shareholders and take 100 percent control of TDC.
 
According to a report in Reuters, ATP reiterated that it would not sell its 5.5 percent stake at the offer price and said it would try to strengthen its holding by buying shares on the open market.
 
NTC said in the statement that it would also seek to acquire shares on the open market in order to reach the 90 percent requirement – which it anticipated achieving by the beginning of February.