September 30, 2009
Today, TDC announced that it has entered into a conditional agreement with Mid Europa Partners, the Central and Eastern European investment company, on the sale of its 64.6% share in the Hungarian telecommunications company, Invitel.
Invitel (formerly known as Hungarian Telephone and Cable Corporation, HTCC) is a Hungarian-based landline operator with activities in Eastern Europe. In TDC's latest earnings release, Invitel's activities were reclassified as "discontinued operations".
"I am pleased with the solution we have now found, and am convinced that Mid Europa Partners is the right company to ensure further development at Invitel," says Henrik Poulsen, TDC's President and CEO.
The aggregate purchase price for TDC's shares is approx. DKK 54.9m. TDC will also divest its shareholder loan of DKK 253.8m at its nominal value. The divestment is expected to yield DKK 120m after tax and take place in the fourth quarter of 2009.
The agreement is conditional on a number of factors including the refinancing of Invitel's debt and on Mid Europa Partners purchasing some of Invitel's bonds from the present bond owners. The Austrian Competition Authority must also approve the divestment.
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