Today, TDC A/S announces that it has entered into a share purchase agreement to
divest its wholly owned Swiss subsidiary Sunrise Communications AG to funds
advised by the private equity firm CVC Capital Partners at a total
consideration of CHF 3.3bn on a cash and debt free basis.
The transaction is subject to Swiss regulatory approval and antitrust clearance
and it is expected to close in Q4 2010.
Following the divestment agreement, Sunrise's activities will be classified as
'Discontinued operations' in TDC's consolidated financial statements effective
from the interim financial statements for January-September 2010. Comparative
figures in the income statements and cash flow statements will be restated
accordingly.
The transaction is estimated to result in a gain of approximately DKK 650m
after tax, which will be recognised as special items related to discontinued
operations, when the transaction has been closed.
The divestment impacts TDC's guidance for 2010.
TDC's previous guidance for 2010, which was published in TDC's interim
financial statements for January-June 2010 on 13 August 2010, was based on full
consolidation of Sunrise:
• TDC expects revenue growth of 1 to 3% compared with 2009.
• TDC expects EBITDA growth of 3 to 4% compared with 2009.
The updated guidance for 2010 for the TDC Group following the divestment of
Sunrise is:
• TDC expects revenue to be level with 2009.
• TDC expects EBITDA growth in the level of 2% compared with 2009.
Our guidance for 2010 is based on comprehensive financial plans for each
individual business line. However, by their very nature, forward-looking
statements involve certain risks and uncertainties. The risks and uncertainties
are described in more detail in the section on risk factors and in the Safe
Harbor Statement in TDC's Annual Report 2009 and TDC's interim financial
statements for January-June 2010.
TDC A/S
Teglholmsgade 1-3
0900 Copenhagen C
DK-Denmark
tdc.com
