Takeover bid sees TDC MTG acquisition halted | Major Businesses | Business
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In an extraordinary volte face amid corporate confusion, Danish telco TDC Group has abandoned plans to buy pay-TV firm MTG's entertainment businesses after a consortium comprising PFA, PKA, ATP and Macquarie Infrastructure and Real Assets has decided to launch a takeover.

viaplay 11august2017TDC has confirmed that the consortium will submit a voluntary recommended public takeover offer to buy the entire share capital of TDC for an all-cash consideration of DKK50.25 per share. The proposed deal is contingent on a number of clauses, not least the merger between TDC and MTG's Nordic Entertainment & Studio Business not proceeding. The Nordic pay-TV firm said that it had been informed by TDC that contrary to the agreement it had struck, the telco's board of directors now intended to withdraw its recommendation of the signed agreement to combine Nordic Entertainment and MTG Studios businesses with its assets.

On 1 February, TDC said that the $2.5 billion acquisition would lead to the creation of Europe's first fully convergent media and communications provider with the merged company showing cost synergies such as the consolidation of TV and digital streaming services, integration of technology platforms, brand consolidation, and customer acquisition and retention cost efficiency gains.

Even though TDC's board of directors and executive management remain convinced of the strategic merits in the previously announced combination with MTG's Nordic Entertainment and Studio businesses, it believes that the new offer provides TDC's shareholders with a highly attractive, immediate and secure value and so it will recommend, subject to its fiduciary and other duties, shareholders to accept the offer once made.