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TDC divests and opens strategic cooperation in Finland

29/04/2014

On Tuesday, the TDC Group and the Finnish telecom provider DNA concluded a strategic cooperation agreement for the Finnish market. Under the agreement, DNA will acquire the TDC Groups local Finnish activities for a price of EUR 154 million (approx. DKK 1.15 bn). The TDC Group will continue to provide solutions for pan-Nordic business customers and international wholesale customers in Finland in co-operation with DNA.

Our cooperation with DNA has historically been excellent and is further strengthened with this agreement. At the same time we ensure access for our pan-Nordic customers to a strong local partner with its own mobile network in Finland. DNA has the size and the experience to handle this task, says Asger Hattel, Senior Executive Vice President of TDC Nordic & Wholesale.

Specifically, DNA will take over the two TDC companies TDC Finland Oy and TDC Hosting Oy as well as their Finnish customers. The TDC Group will continue to have a fibre based transmission network in Finland as part of TDC's European Ring and thus continues to be the only provider offering one overall Nordic fibre infrastructure.

Our main focus has been to ensure the best possible service for our pan-Nordic business customers and international wholesale customers, which is exactly what this agreement does. At the same time, our local Finnish customers will remain in safe hands. The agreement leaves TDC as the strongest telephony and data solutions partner in the Nordic region, says Asger Hattel.

The acquisition of TDCs Finnish subsidiaries significantly strengthens DNAs position in the Finnish corporate market:

With our cooperation, TDCs customers in Finland will be able to make use of TDCs high-quality international connections also in the future. At the same time, the arrangement will broaden our service offering for both DNA and TDC customers, says DNA CEO Jukka Leinonen.

DNA will pay the TDC Group 154 million (app. DKK 1.15 bn) on a cash and debt free basis for the Finnish activities. The transaction is subject to approval from the Finnish competition authorities. This is expected to be received in Q2 this year. The parties have agreed on a 24-month transition period to ensure the best possible customer experience for relevant customers.

Facts about TDC Finland

TDC Finland is a leading provider of telecommunication services to large enterprise, public accounts and wholesale customers

The product range includes data, mobile, fixed voice and hosting

TDC Finland also offers hosting and IT solutions with a primary focus on managed hosting

In 2013, TDC Finland generated revenues of DKK 698m

Facts about DNA

DNA is Finlands third-largest telecom provider providing high-quality voice, data and TV services for communication, entertainment and working

The company includes a residential and a business division

DNA is the largest cable TV provider in the Finnish market and the leading pay TV provider in both the cable and terrestrial networks

In 2013, DNA recorded a turnover of EUR 766 million and an operating profit of EUR 44 million. DNA Ltd has more than 3 million mobile communications and fixed network customers
LINK: http://press.tdc.com/press-releases/tdc-divests-and-opens-strategic-co...
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