KPN sells German mobile operator to Telefonica
Dutch telecom operator KPN says it has sold its German subsidiary E-Plus to Spain's Telefonica for five billion euros in cash and a 17.6 percent stake in Telefonica Deutschland.
The deal creates the biggest operator on the German market, as measured by subscribers, and ends a long effort by KPN to raise cash as it seeks to build up defences against a hostile takeover effort by Mexico's America Movil.
Following approval from the authorities, the sale should allow for 5.5 billion euros in efficiencies on the German mobile communications market, KPN said in a statement.
"KPN will use most of this money to increase its financial flexibility and intends to resume payments of dividends to stockholders for 2014," the company said.
KPN had been urgently looking to sell its German business as a way to fend off the takeover effort by America Movil, but had struggled to do so given a poor investment climate.
The Mexican giant, owned by tycoon Carlos Slim, owns 27 percent of KPN ever since it launched a hostile bid in 2012. America Movil approved the sell-off in exchange for two seats on the KPN board.
The announcement comes as KPN announced a 68-percent fall in net profit for the first half of 2013 to 108 million euros. Sales in the period were off 8.1 percent from the figure a year earlier to 2.93 billion euros, the company said.
"Conditions remained challenging in the first half of 2013, however we have further strengthened our market positions," chief executive Eelco Blok said.
- Phelps tops 100m fly qualifying in return
- AFP photographer picks up eight prizes in 2014
- Zimmer to buy Biomet for $13.35 bn
- Proposed US rules leave open Internet fast lanes
- 'Chosen One' banner removed after Moyes sacking
- China approves jail for rare wild animal eaters
- UK asks Muslim women to report would-be Syria jihadists
- Bloody souvenir 'not from decapitated French King Louis XVI'
- Janet Yellen, Miley Cyrus odd bedfellows in Time’;s list of 100 most influential
- Pope in hot water over ‘personal’; phone calls
- A month after ‘MH370 ended in Indian Ocean’;, Najib not ready to declare aircraft, passengers lost
- Malaysia's Anwar gets Susan Rice meeting
- Putrajaya submits early report on flight MH370, but won’t publicise it, says CNN
- Armed pirates siphon Thai tanker oil cargo off Malaysia
- It’s Obama’s right to see Anwar or not, says Dr Mahathir – Bernama
- Tuhan Harun case postponed again to July 22 – Bernama
- What if flight MH370 is never found?
- New law to give Sarawak natives freedom in purchasing customary rights land
- Rafizi rebuts deputy minister’;s denial on grant given to company favoured by Najib
- Anwar says court was biased in his sodomy appeal