TDC Net reportedly mulling options

TDC Net, the Danish telecom company that took over the infrastructure side of former incumbent TDC when the company split into infrastructure and service provider outfits, has hired LionTree to explore strategic options for the business, according to a report by Reuters.

According to the report, citing two unnamed sources, TDC Net, which is 50% owned by Macquarie, is reviewing its business in view of ongoing consolidation in the Danish market and an underwhelming performance in recent times.

The report said that TDC Net is not actively involved in any sales discussions at present.

TDC was delisted and split into two following its acquisition by an Macquarie-led investor consortium. However, it has suffered from being heavily indebted and from an underwhelming performance.

For the six months to June, the company posted a decline in sales of 2.6% to DKK3.272 billion. EBITDA edged up by 1% to DKK2.34 billion thanks to cuts in operating costs.

TDC has faced moves towards consolidation in the Danish market. Energy and telecoms company Norlys, which owns the Stofa cable network and fibre assets, recently acquired Telia Denmark, giving it a mobile play to compete at national level with service providers as well as infrastructure companies.

Separately, the former service provider arm of TDC, Nuuday, which operates the YouSee brand, this week teamed up with TDC Erhhverv to market to 23,000 new homes in the Svendborg and Lageland area of South Funen, providing TV and internet as well as digital business solutions over fibre.