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.
- Ukraine hosts top diplomats as pressure grows on president
- Ukraine hosts OSCE meeting as pressure grows on Yanukovych
- N. Korea prison camp expands, guards use rape and torture: report
- North Korea prison camp expands, guards use rape and torture: report
- UN Council set to authorize Central African force
- Swann catch ensures honours even in 2nd Ashes Test
- Swann catch keeps England in Test contention
- Tokyo to launch $53.8 billion stimulus package
- Iraq forces end Kirkuk mall siege, release hostages
- Philippine leader to help Myanmar’;s move to democracy
- I will think about it, says Dr Mahathir on PM’;s call for him to remain as Petronas adviser
- Dialogue with PAS the start of unity talks, says Zahid Hamidi
- Open membership to all or be doomed, PKR’;s Surendran tells Umno
- After six months, Umno decides it won popular vote in GE13
- Sabah and Sarawak brace for floods as heavy rain warning lifted in five other states
- For MCA, Penang made surplus through state land sale
- Malaysia lost RM40 billion investments because of Pakatan’;s “tactics”
- Japan, SE Asia in talks to expand currency swap
- Tweaks to taxation law to hit savers, small traders hardest
- Sex blogger couple seeks stay on trial for sedition and pornography charges