TDC Shares Set to Be Priced Around Mid-Point of Range, According to Terms

TDC A/S, Denmark’s biggest phone company, will probably set a price for its share sale at around the middle point of the original offer range, according to terms for the sale.

The banks managing the offering narrowed the price range to between 50 kroner to 52 kroner each, according to a sales document obtained by Bloomberg. TDC’s private-equity owners had previously been offering 210 million shares for 47 kroner to 56 kroner apiece. They may sell another 31.5 million shares through an overallotment option if demand is sufficient, bringing the total offering to as much as 12.6 billion kroner ($2.3 billion) if priced at 52 kroner each.

Apax Partners LLP, Blackstone Group LP, KKR & Co., Permira Advisers LLP and Providence Equity Partners Inc. acquired their 88 percent stake in TDC in 2006 in a transaction worth about $15.3 billion, including net debt.

The buyout firms are selling a stake as investors seek dividend yields from European telecommunications stocks after years of rapid growth and overseas acquisitions. TDC’s Chief Executive Officer Henrik Poulsen has promised to return 80 percent to 85 percent of free cash flow to investors in dividends. The Copenhagen-based company plans to pay a dividend of 4.35 kroner a share in 2011.

TDC also plans to buy back as much as 9 billion kroner of stock from all shareholders. The buyout firms will retain a stake of as much as 60 percent after the share sale and buyback, Poulsen said in a conference call on Nov. 25.

Managers for the sale, JPMorgan Chase & Co., Morgan Stanley, SEB AB, Deutsche Bank AG and UBS AG will stop taking orders at 12 p.m. in London tomorrow, according to the document.

To contact the reporter on this story: Adam Haigh at ahaigh1@bloomberg.net; Zijing Wu in London at zwu17@bloomberg.net.

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net; Daniel Hauck at dhauck1@bloomberg.net.

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