1809 — KPN to acquire Telfort

Jun 29, 2005 | Conteúdos Em Ingles

KPN announced it has reached an agreement in principle to acquire Telfort, the Dutch mobile operator, with 2.4 million subscribers, for a total consideration of EUR 980 million on a debt and cash free basis.
 

Depending on specific performance criteria this amount could be increased by a maximum of approximately EUR 140 million, says KPN. As part of the acquisition, KPN will acquire net operating losses amounting to more than EUR 900 million representing a Net Present Value of approximately EUR 180 million. Following this transaction KPN will serve the complete subscriber spectrum of the Dutch mobile market, including those higher growth customer segments, which are complementary to its current customer base.

The acquisition is subject to approval by the Dutch Competition Authority . KPN’s works council has already given a positive advice on the acquisition. Consultation of the trade unions will commence shortly.

Commenting on this transaction Ad Scheepbouwer KPN´s Chairman and Chief Executive Officer
said “it will enable us to faster achieve our stated goal to obtain a revenue share in the Dutch market of more than 40%. This will improve our competitive position vis-à-vis the strong European players that are active in the Dutch market and strengthen our ability to compete internationally. In the medium term we envisage significant savings from this acquisition, which include operational, marketing and network savings. We look forward to welcoming Telfort’s strong Management team, which in recent time has built up a formidable track record.’

2005-06-29

Em Foco – Empresa