Telefonica has agreed to give KPN a bigger stake in their combined German mobile operators in order to gain approval for the deal from KPN's largest shareholder, America Movil. KPN will still receive EUR 5 billion cash for merging E-Plus with Telefonica Deutschland. In addition, the Dutch operator will receive a stake of 20.5 percent in the new company, up from 17.6 percent as agreed in July. KPN said this raises the total value of the transaction to EUR 8.55 billion from EUR 8.10 billion.
Telefonica will hold 62.1 percent in the German company, instead of the 65 percent originally agreed, and the remainder will be free float. Telefonica will still have an option to increase its stake to 65 percent. The option can be exercised a year after completing the initial deal, at a price of EUR 510 million plus interest since the closing of the takeover and net of dividends.
KPN shareholders are scheduled to vote on the proposed sale of E-Plus on 02 October. The takeover also still requires regulatory approval.
America Movil said in a statement that it will vote for the transaction at the KPN EGM; its board members at KPN also approved the new deal. In addition, the Mexican company reiterated its intention to launch a takeover bid for control of KPN, saying it recently presented the bid to KPN management and plans to start talks with local authorities on the offer.
The company said it intends to keep KPN's "identity" after the takeover, including the headquarters in The Hague and the KPN brands. It also targets acquisitions to strengthen KPN's position in its home markets. If America Movil does not acquire more than 95 percent of KPN's shares, the Dutch operator will maintain a stock market listing, with "adequate minority shareholder protection", America Movil said.
