COPENHAGEN — Danish state telecommunications monopoly Tele Danmark A/S Wednesday reported a hefty profit rise ahead of its partial privatization through the biggest stock issue in Denmark’s history.
Net profit rose to $ 235.4 million from $ 138 million on turnover of $ 2.46 billion, up from $ 2.36 billion.
Pretax profit surged to $ 363.7 million from $ 206 million in 1992.
“Tele Danmark’s turnover and net profit is expected to continue to develop in a positive way,” said a forecast accompanying the 1993 result.
Earlier this month the Danish parliament passed a bill under which the state will cut its stake in Tele Danmark to 51% from 89.9% during the first half of this year.
Prospectus on the way
Market sources expect a prospectus to be revealed next week. A date for the listing of the company on the Copenhagen and New York stock exchanges has not been set, but April 28 has been mentioned as a possibility by the head of the Copenhagen bourse.
Danish Bank Den Danske Bank A/S, the global coordinator of the issue together with U.S. investment bank Goldman Sachs, has forecast in an analysis Tele Danmark net profit will rise to $ 359.2 million in 1994.
Den Danske Bank said it expected the issue to raise more than $ 2.87 billion in capital.
The sale of 49% of the group’s share capital, including a 10% privately held stake that has been redeemed by the state and sold to Tele Danmark, will be by far the biggest issue in Danish history.
$ 6 bil value
Including the 51% stake of A-shares which would still be held by the state, the total stock market value of Tele Danmark would be $ 6.04 billion, according to the analysis.
In terms of bourse value, Tele Danmark would become Denmark’s second-biggest company after the privately controlled A.P. Moeller shipping and oil group.