Danish TDC Group (TDCAF.OB) is purchasing Norway cable-TV provider Get AS to create Scandinavia's largest cable-TV-company in terms of revenue. TDC Group would buy Get AS from GS Capital Partners and Quadrangle Capital Partners at a price of 13.8 billion Norwegian Kroner, or 12.5 billion Danish Kroner. The transaction would be debt financed and TDC would simultaneously adjust its dividend payout ratio to nearly 60% of Equity Free Cash Flow which means that it would currently expect a dividend payout at 2.50 Danish Kroner per share for 2014, whereas it has previously expected a dividend at 3.70 Danish Kroner.
Get AS serves over 500,000 households and is the fastest growing and most profitable provider on the Norwegian market.
With 1.7 million connected homes and a 7 billion Danish Kroner revenue from the cable business, the TDC Group would be the leading communication and home entertainment company in the region.
Through the acquisition of Get, TDC Group's cable business would increase to a total of 1.7 million connected households, up from the present 1.2 million in the YouSee brand. A total of 29 percent of TDC Group's revenue would derive from the cable business and this share is likely to grow. The acquisition may close in the fourth quarter of 2014.
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