Less than two weeks after plans for the deal were first revealed, Danish telecom company TDC Group is withdrawing its bid to acquire the entertainment assets of Swedish media conglomerate Modern Times Group (MTG).
MTG released a short statement this morning (February 12) about TDC’s intention to “withdraw its recommendation of the signed agreement with MTG to combine its Nordic Entertainment and MTG Studios businesses with TDC Group.
“The combination is subject to, inter alia, the approval by a TDC Group shareholders’ meeting,” the statement continued. “MTG will provide further information to the market as and when it is received.”
MTG assets that would have been part of the deal include UK-based, international content distributor DRG, acquired by MTG in 2013; Nordic production group Nice Entertainment, acquired by MTG in November of the same year; Swedish free-to-air, flagship general entertainment TV channel TV3; satellite platform Viasat; and Nordic streaming video service Viaplay.
TDC’s decision to pull out of the USD$2.5 billion deal follows a move by a consortium led by Australian investment group Macquarie and including three Danish pension funds to acquire the Copenhagen-headquartered company in a cash deal reportedly worth USD$6.6 billion, which TDC has reportedly accepted.
(Pictured: MTG president and CEO Jørgen Madsen Lindemann, courtesy of MTG)