A consortium of investors including Apax Partners, Blackstone, KKR, Permira and Providence Equity have offered €750m of stock for sale in Danish telecoms major TDC.
The group is selling around 128 million shares in the company for DKK43.40, equivalent to a 15 per cent stake. The company is currently valued at around DKK35.7bn ($6.32bn).
The decision to sell the stock was triggered by a rally in the European markets, which the firms took advantage of in order to return money to investors. The group currently owns around 59 per cent of the company.
The consortium, led by Apax, bought an 88 per cent stake in the Copenhagen-based company in 2006 for $3bn in cash and $12bn in debt, in what was then one of Europe’s largest leveraged buy-outs.
The company was then floated in December 2010, and set a range of DKK47 – 56 (€6.3 – €7.5) per share, with 210 million shares on offer. The five firms still held as much as a 60 per cent stake in TDC after the IPO and buyback.
At the time, the success of the IPO defied highly publicised predictions by ATP, Denmark’s largest pension fund, at the time, that the country faced ‘fifteen years in the cold’ before its economy recovered.
Copyright © 2012 AltAssets