TdF gets Deutsche Telekom’s Media unit

Telediffusion de France (TdF), the French broadcaster owned by private equity groups, has beaten Australian bank Macquarie in the auction for Deutsche Telekom’s Media & Broadcast unit. The deal value is thought to be €700m.

Deutsche Telekom’s media & broadcast unit provides services for broadcasters and media organisations. The telecoms group has previously said that it is offloading non-core assets as it pursues growth through acquisitions in the mobile communications sector outside Germany.

The deal is backed by financing from BNP Paribas and Citigroup, and debt is likely to be around €550m. Financing is on a standalone basis, rather than as a bolt-on, with TdF one of the more popular leveraged names among debt investors.

Earlier in the year, the media and broadcast business was expected to fetch €1bn but offers came in significantly below that target price. Macquarie is understood to have been the only other bidder in the final stages.

Last year, Charterhouse Capital Partners and Caisse des Dépôts et Consignations slashed their stakes in TdF. The deal saw Charterhouse and La Caisse – which led the original €2.5bn buyout from France Telecom in 2002 – retain significant holdings in the business while Texas Pacific Group (TPG) became the largest single shareholder.

TPG now owns a 42% stake and Axa Private Equity 18%, while Charterhouse cut its 55% interest to 14% and Caisse des Dépôts et Consignations’ interest fell from 44% to 24%.