|
France Telecom and TDC to merge Swiss units Orange, Sunrise
(M&A Navigator Via Acquire Media NewsEdge) France Telecom (EPA:FTE) and Danish telecomms solutions provider TDC (CPH:TDC) said Wednesday they had struck a deal to merge their Swiss subsidiaries, Orange Communication and Sunrise Communications.
The combined company will become the leading alternative provider of telecommunications services in Switzerland, they said in a joint statement. In addition, it would offer a better "customer reach and service through a larger network of shops and improved customer services". The tie-up is expected to generate synergies with an estimated net present value of EUR2.1bn.
The move is a step forward in the long-term strategy of France Telecom-Orange in Switzerland, France Telecom's deputy CEO and CFO Gervais Pellissier said.
Under the terms of the agreement, France Telecom will pay EUR1.5bn (USD2.2bn) to TDC for 75% of the merged entity, with TDC holding the remainder. The board of the new entity will comprise representatives of TDC and France Telecom, with the latter holding the majority of the seats. Thomas Sieber will assume the post of chief executive officer.
As part of the deal, TDC will have an option to dispose of its stake to third-parties from the second year after closing or to launch an initial public offering from the third year after closing. At the same time, France Telecom will have the right to acquire TDC's stake from the first anniversary of closing for at least EUR1.2bn. The final deal signing, which is expected to take place in late February 2010, will be preceded by a confirmatory due diligence to be carried out by both companies. The closing will be also conditional upon clearance by the relevant competition and regulatory authorities.
The transaction is expected to create substantial value for both shareholders and to be accretive for France Telecom's free cash-flow per share from 2010.
Country: Switzerland
Sector: Telecommunications
Type: Merger
Status: Agreed
((Comments on this story may be sent to tww.feedback@m2.com))
(c) 2009 M2 COMMUNICATIONS
[ Back Small Business VoIP Global Community's Homepage ]
|
SUBSCRIPTIONS
Activate Email 
TMCnet LOGIN
