TDC announces, that TDC A/S today has entered into an agreement regarding purchase of 100% of the share capital of Onfone ApS (Onfone). The purchase price for the company on a cash and debt free basis amounts to DKK 288 – 313 m. depending on the final estimate of contingent liabilities. It is the expectation that the transaction will be completed before the end of May 2011.
Onfone was founded in 2006 by the current Chief Executive Officer Morten Strunge. The primary activity of the company is sale of mobile telephony to consumers in Denmark, where the company is a leading provider of low price flatrate subscriptions. In particular from the autumn of 2010 Onfone has had a substantial intake of customers and by the end of April 2011 had 170.000 active mobile customers.
For the company's financial year 2009/2010 Onfone published revenues of DKK 24 m. and an EBITDA of DKK (13) m.
In connection with the closing of the transaction TDC expects to be able to provide further information in relation to the expected effects for the 2011 results. The effect will depend on the speed with which the customers of Onfone can be migrated onto the network of TDC and one time costs in relation to the migration. For the financial year 2011 it is still the expectation that the Board of Directors will propose a dividend of DKK 4.35 per circulated share of which DKK 2.18 is expected to be paid out in August 2011.
Onfone will continue as a separate company within the TDC group. The current management team will continue in their positions within the company.
TDC A/S
Teglholmsgade 3
0900 Copenhagen C
DK-Denmark
tdc.com
