Danish TDC acquired the Scandinavian media business of the Swedish MTG
The Danish telecommunications company TDC acquired the Scandinavian media business of the Swedish Modern Times Group (MTG). The transaction is valued at 2.5 billion USD. As is clear from the details, TDC buys the Viasat TV channel, as well as the Scandinavian entertainment business of MTG. The sale does not include debt instruments, and the price will be paid in shares and in cash. Thus the Swedish company will receive 3.3 billion SEK and 309 million new shares.
The deal is already backed by MTG’s main shareholder, the Kinnevik investment group, which controls 47% of the shares. After the transaction, TDC will have access to 3 million TV subscribers and over 10 million households in the Scandinavian region.
The money, which MTG will receive. will be used to implement the plans for the global development of its digital business. On the other hand, the Danish telecom intends to offer in Denmark and Norway a full package of services including mobile services, the Internet and television.
According to MTG’s annual report, the total revenue for international business for the fourth quarter amounted to 372 million SEK (47 million USD). This is an increase of 6% on an annual basis. The annual revenue for the group’s international business amounted to 1.2 billion SEK, an increase of 8%. The operating profit is 76 million SEK for the quarter and 176 million SEK for the year.
TDC has 3 million mobile subscribers, mostly in Denmark, as well as about 1.6 million users of TV and Internet service in Denmark and Norway.
MTG has 1.2 million TV subscribers, mostly in Sweden.