TDC Group said it is buying Norwegian cable television and broadband provider Get. It said this will create Scandinavia’s largest cable TV operator in terms of revenue. The expanded group will have 1.7 million residential cable TV customers and DKK 7 billion revenue a year. TDC Group is buying Get from GS Capital Partners and Quadrangle Capital Partners for NOK 13.8 billion or DKK 12.5 billion, which will be financed in debt. At the same time, the dividend for 2014 will be DKK 2.50 per share, compared with the previously expected payment of DKK 3.70.
The deal needs to be approved by the Norwegian competition regulators, and this is expected in t he fourth quarter. The financial advisor was JP Morgan and the legal adviser to the TDC Group was Kromann Reumert.
TDC CEO Carsten Dilling said this is the Danish operator’s most significant investment in many years. It said it had been waiting for this opportunity and that the deal us a natural and timely expansion of the group. Get has 500,000 private and business customers and had the fastest growth of any provider in the Norwegian market in 2013.
Cable TV will account for 29 percent of TDC’s turnover and this is expected to rise. Get has had double-digit growth every year since 2000, with the exception of 2005, and is one of the most profitable European companies.
TDC Norway has a fibre network with a focus on large business customers. In conjunction with partner networks, Get passes 700,000 Norwegian homes. As well as retail customers, Get also services medium-sized enterprises. Get will continue to be led by Gunnar Evensen. Eventually, the two will offer the same business services as TDC does in Denmark, said Dilling.