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TDC inches closer to separating network and services

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The Danish operator was acquired by Macquarie and three local pension funds in 2018.

TDC announced it had separated its businesses into two legally and operationally individual subsidiaries, TDC NET and Nuuday, in June 2019. It will finalise the separation of TDC Group as of January 1, 2022 with the aim of "establishing two market leaders within their individual sectors".

TDC NET is Denmark’s largest mobile network and broadband provider focused on building Denmark’s digital infrastructure. Nuuday is Denmark’s largest connectivity, communication, and entertainment service provider, consisting of nine brands, delivering digital solutions to various customer segments.

A conclusion

The process will be concluded on December 31, 2021, at which time employees in the shared group functions in TDC Group will have been transferred to either TDC NET or Nuuday, and the future composition of the Board of Directors for both TDC NET and Nuuday will be in place.

The separation of TDC Group will be completed and the management of TDC Group, consisting of CEO Henrik Clausen, CFO Lasse Pilgaard and Senior Executive Vice President Jens Aaløse will be stepping down.

The objective is to make TDC a holding company with Nuuday and TDC NET operating as stand-alone companies. Lasse Pilgaard and Jens Aaløse will step down from their respective positions on the Board of Directors of Nuuday and TDC NET, while Henrik Clausen will continue as Chairman of TDC NET. He has been in the role since February 2020.

From setting up separate tower holding companies (like Vodafone and Orange), selling off passive infrastructure (like Telefonica), to splitting their businesses in various ways (see today's story about the SK Telecom split), and seeking third-party investors to fund fibre build outs (in the UK and the Netherlands, for example) telcos everywhere are striving to create more value from their assets and share their prices.

It seems to be working – investors are piling into undervalued telcos.