Macquarie and Danish pension trio knocked back in bid for TDC

The telecoms group dismisses offer as ‘not in the best interest’ of shareholders, but the consortium argues its proposal ‘represents excellent value’.

An offer for TDC by Macquarie Infrastructure and Real Assets alongside Danish pension funds PFA, PKA and ATP has been rejected, the telecoms group revealed.

While the parties declined to disclose the details of the offer, local media reported a price of Dkr47 ($7.70; €6.31) per share, which would value the firm at about $6.3 billion. However, TDC rejected the proposal saying it “is not in the best interest of TDC’s shareholders and stakeholders”.

“TDC will always remain open to consider alternatives that deliver superior value to TDC’s shareholders going forward,” the Copenhagen-listed group added.

Macquarie and the pension fund consortium refuted TDC’s claim, insisting the offer was made at an “attractive price” amid an ambition to provide 1GB per second broadband access to all Danish households by the mid-2020s. The Danish government’s current target is 100mb per second. TDC also offers telecoms and television services.

“The consortium’s plans are centred around investment and do not envisage any redundancies,” the quartet stated. “The consortium believes that the proposed offer represents excellent value for shareholders, TDC and Denmark. The consortium recognises the development seen in TDC in recent years, and would welcome an opportunity to enter a dialogue with the TDC board of directors.”

TDC’s EBITDA has fallen in the past two years, with a drop of 2.9 percent to Dkr8.2 billion in 2017, TDC’s results revealed last week. This was partly attributed to weaker-than-expected development in its TV services and Norwegian kroner exchange losses. The company was subject to a €10 billion deal in 2005 in which Blackstone, KKR, Providence and Apax bought 88 percent of its shares. Their ownership was eventually wound down in 2013.

Macquarie Group’s most recent involvement with the Danish pension group was through its Macquarie Infrastructure Debt Investment Solutions division, as part of PKA and PFA’s £2 billion acquisition of 50 percent of the Walney Extension offshore wind farm in the UK last October. Macquarie also sold its share in Copenhagen Airport to ATP in September for €1.3 billion.