November 17, 2009
Today, TDC and DONG Energy formally agreed on the sale of DONG Energy's fiber communications network to TDC. The network will be operated as an open network with service provider access. The purchase price is expected to total DKK 425m.
Lars Clausen, Executive Vice President of DONG Energy, is very satisfied with the divestment:
"I'm pleased that today we can pass the baton to TDC, the right company to purchase our fiber communications network. The need to communicate and transmit data is accelerating worldwide, and fiber optics is the strongest technology. I wish TDC all the best and hope that many customers will benefit from the continued focus in this field."
TDC regards the investment as the next natural step in developing its fiber strategy:
"To us, DONG Energy's fiber communications network is an attractive investment because it fits in perfectly with our development plans for our future business activities. We are already Denmark's largest investor in fiber communications networks and as such we are naturally expanding our activities in this area," says Henrik Poulsen, TDC's President and CEO.
The employees in both TDC and DONG Energy's fiber communications network activities were informed of the divestment early this morning.
DKK 325m of the expected total purchase price of DKK 425m will be paid in cash on completion of the agreement, which is expected to take place before the end of 2009. The remaining sum to be paid will depend on the future performance of the acquired activities.
DONG Energy and TDC will hold a press conference today, November 17, 2009, at 10.30 a.m. at DONG Energy, Nesa Allé 1, Vangede, DK-2830 Gentofte. Henrik Poulsen, President and CEO of TDC, and Lars Clausen, Executive Vice President of DONG Energy, will be present to answer any questions.
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