KPN said it has signed a long-terms relationship agreement with America Movil (AMX), its largest shareholder, which will support KPN in its bid to raise EUR 4 billion in equity capital.
AMX said it will, subject to certain conditions, vote in favour of certain resolutions to be put before the general meeting of shareholders. The AGM is scheduled to take place on 10 April, and replaces the EGM planned for 19 March, which is hereby cancelled. AMX will approve KPN’s capital raise subject to to the appointment of two individuals, designated by AMX, to KPN’s supervisory board, amongst other conditions.
The capital raise to be supported by AMX will consist of a EUR 3 billion rights issue and the issue of hybrid capital instruments which are expected to receive partial equity recognition, bringing the total to EUR 4 billion. KPN will use the proceeds to reduce its net debt level and to continue investing in operations. Subject to market conditions, KPN intends to issue the hybrid capital instruments during the course of 2013.
AMX will participate in the rights issue, again subject to certain conditions, and subscribe for newly issued ordinary shares in KPN pro rata to its current stake of around 28 percent. KPN said that it and AMX look forward to further developing their relationship by leveraging the financial, commercial and operational expertise of both parties.
KPN said its Relationship Agreement with AMX takes into account the interests of all shareholders and other stakeholders of KPN.
