TDC Group divests TDC Hosting, updates 2017 EBITDA guidance

6 Feb 2017

TDC Group has updated its EBITDA guidance for 2017, following the inking of an agreement to divest TDC Hosting – which provides IT infrastructure and IT outsourcing services – to Maj Invest Equity for an undisclosed sum. The Danish company said that the deal is in line with its three-year strategy (2016-2018) aiming to streamline its business, improve connectivity and enhance customer experience, with sales proceeds to be applied towards debt reduction. The divestment is subject to merger control approval from the Danish Competition and Consumer Authority (DCCA, known locally as Konkurrence- og Forbrugerstyrelse) and closing of the transaction is expected within two-three months. Following the announcement of the divestment, TDC has updated its EBITDA guidance for 2017 to DKK8.2 billion (USD1.2 billion), down from DKK8.3 billion previously.

As reported by TeleGeography’s CommsUpdate in January 2016, TDC concluded a strategic review of its TDC Hosting division (started in April 2015), with the group opting at the time to retain ownership of the business provider going forward.

Denmark, TDC Group (old)