PRINT THIS PAGE France Telecom sells TDF to private equity consortium for E1.6bn25/07/2002. Source: AltAssets. 
 France Telecom has announced the sale of its transmission business TDF to a consortium of private equity firms for E1.6bn. Charterhouse Development Capital, CDC IXIS Equity Capital and Caisses des Depots will take a 64 per cent stake, leaving France Telecom with a 36 per cent stake in the new entity.
The deal clearly illustrates how the enormous debt burden being suffered by the major telecoms businesses across Europe is producing attractive investment opportunities for cash-rich private equity firms. Many of the telecoms companies have been forced to divest non-core operations to reduce their debt. France Telecom currently has debts of around E63bn.
Charterhouse and CDC will hold a 45 per cent stake in the new entity, France Telecom 36 per cent, and Caisse des Depots 19 per cent. The transaction values TDF at E1.9bn.
France Telecom said in a statement: ‘The sale…and the investment by the new shareholders gives TDF access to the financial resources needed to seize growth opportunities created by the advent of digital terrestrial television, outsourcing of wireless telephony infrastructures and the deployment of UMTS, as well as international development opportunities.'
TDF provides broadcast services for radio and TV channels, as well as services for wireless telephone operators. Besides France, it also has operations in Finland and Spain.
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