America Movil to issue bonds exchangeable for KPN shares

News General Netherlands 20 MAY 2015
America Movil to issue bonds exchangeable for KPN shares
America Movil announced plans to issue bonds exchangeable into KPN shares. The offering is expected to raise EUR 2.25 billion, with an option to increase this by EUR 250 million. The bonds will have a maturity of five years and are expected to pay a coupon of between zero and 0.5 percent per year. The exchange premium is expected to be 40-45 percent above the reference price of KPN shares. The reference price will be the volume weighted average price of KPN ordinary shares traded in Amsterdam on 20 May. 

America Movil will have the option to redeem the shares after 2.5 years if KPN's share price increases to a certain level. If redeemed at maturity, the bonds may be settled in cash, the underlying KPN shares or a combination of the two. After the issue, America Movil said it has agreed not to place any further KPN shares for 90 days. 

The offering appears to be a way to dispose of the KPN shares, as the Mexico-based company said it did not have a specific purpose for the bond proceeds. America Movil still has a stake of over 20 percent in the Dutch operator, but has been gradually reducing this. The company's attempt to acquire the Dutch operator in 2013 failed after it was unable to reach agreement on price and terms with the KPN management. 

Categories:

General

Companies:

KPN,  America Movil

Countries:

Netherlands

Tags:

Shareholders & subsidiaries, Financial funding, M&A buyouts & divestments

Related Articles

NETHERLANDS 21 APR 2016

America Movil considers sale of 21% KPN stake - report

America Movil is considering the sale of its minority stake in Dutch operator KPN, people with knowledge of the matter told Bloomberg. The 21 percent stake is what remains of America Movil's failed takeover attempt of KPN almost three years ago. KPN's share price has roughly doubled in the past three years, and the stake is now worth about EUR 3.2 billion. Bloomberg's sources said the stake could be attractive to other operators looking to expand in Europe, such as Deutsche Telekom, Orange or Altice. Howeve

NETHERLANDS 11 SEP 2015

America Movil issues exchangeable bonds with KPN shares

America Movil announced the completion of a placement of EUR 750 million in bonds exchangeable into shares of Dutch operator KPN. The three-year bonds pay annual interest of 5.5 percent, as well as an additional interest equal to 85 percent of the gross amount of cash dividends and distributions paid in relation to the underlying KPN ordinary shares. The minimum exchange price for the KPN shares is the volume-weighted average price of the stock on Euronext Amsterdam on 10 September 2015. This was set at EUR

NETHERLANDS 17 JUL 2015

America Movil reclassifies KPN stake as asset for sale

America Movil has reclassified its stake in KPN as an "asset available for sale". Previously the around 21 percent stake was considered a "long-term investment valued at cost". According to the Mexican company's Q2 report, the reclassification is due to the issue in May of bonds convertible to KPN shares, a method to dispose of the stake eventually. The underlying shares in the no-interest, five-year bond are the equivalent of 14.3 percent of KPN's total outstanding. The stake in KPN is now included in the

LATIN AMERICA AND THE CARIBBEAN 17 JUL 2015

America Movil posts fall in Q2 revenues, EBITDA

America Movil reported second-quarter revenues down 0.1 percent to MXN 220 billion, hurt by weak results in its home market Mexico, the economic slowdown in its largest market Brazil and currency effects. EBITDA fell 5.0 percent to MXN 68.3 billion pesos, and the EBITDA margin declined from 32.6 percent to 31.1 percent. At constant exchange rates, service revenues were down 0.5 percent in the period, and EBITDA fell 3.1 percent. Operating profit was still up 2.2 percent to MXN 36.3 billion, helped by lower

NETHERLANDS 25 MAY 2015

Altice considered bid for KPN - report

Altice considered seriously a takeover bid for Dutch operator KPN, before deciding against the plan as the price was too high, L'Echo reports. According to the Belgian paper's sources, Altice was looking at KPN the same time as it was studying the recently agreed bid for US cable operator Suddenlink. KPN chairman Duco Sickinghe said there was no contact between the two groups. While noting that Altice had previously stated publicly its interest in KPN, Sickinghe said the company had not had access to KPN's

NETHERLANDS 31 MAR 2015

KPN pays bonuses as share price increases 50% in 6 months

Unions have called for KPN CEO Eelco Blok to give up his bonus, saying it's not appropriate given the thousands of jobs lost at the Dutch operator. They also called for a more long-term strategy and investment at the operator. At the same time, KPN's share price is up around 50 percent from six months ago. 

NETHERLANDS 16 FEB 2015

KPN CEO says takeover not on the horizon

KPN CEO Eelco Blok said he does not expect the Dutch operator to be acquired in the near term. Since the failed takeover by America Movil in 2013, KPN has become stronger, and if a new bidder emerged, the company would be in a much better negotiating position, Blok said in a interview with the paper De Telegraaf. KPN has significantly reduced its debt thanks to a rights issue and the sale of its German unit E-Plus. It's also strengthened its position on the Dutch market with the buy-out of its FTTH joint ve

NETHERLANDS 3 NOV 2014

America Movil CFO sells shares in KPN

America Movil CFO Carlos Garcia Moreno Elizondo has reduced his stake in Dutch operator KPN. Elizondo is one of two representatives of America Movil on KPN's supervisory board. According to recent filings with the Dutch securities regulator AFM, he reduced his stake to just under 200,000 shares in the company, from 305,400 previously. America Movil has also been reducing its stake in KPN since its failed takeover attempt of the operator a year ago. It now holds around 21 percent of the company. 

MEXICO 27 OCT 2014

America Movil will not hurry decision about KPN share - CEO

Mexican telecoms operator America Movil will wait until next year to decide the future of its stake at Dutch operator KPN, America Movil CEO Daniel Hajj said during a conference call with investors. America Movil's stake in KPN currently reaches 21.4 percent. This share enables the Mexican firm to have two seats on KPN's supervisory board. Hajj said that the company is not in a hurry to make a decision regarding its stake in the Dutch telco. The CEO added that the company is comfortable with its stake level

NETHERLANDS 24 OCT 2014

America Movil stake in KPN falls to 21.4%

America Movil's stake in KPN has fallen to 21.4 percent, according to the Mexican operator's latest quarterly report. It last reported a 22.6 percent stake in the Dutch operator in June. 

NETHERLANDS 22 JUL 2014

America Movil cuts stake in KPN

America Movil has reduced its stake in Dutch operator KPN to 22.6 percent. The Mexican company said in its Q2 report that it sold some of its KPN shares to help finance other investments. Its stake has now fallen from a peak a 29.8 percent last year when it launched a failed takeover bid for KPN. According to CFO Carlos Garcia-Moreno, America Movil plans to maintain its stake at around 20 percent in order to keep its two seats on KPN's supervisory board. This right drops to one seat if the stake falls to 10

MEXICO 14 JUL 2014

America Movil hints at KPN stake sale

America Movil plans to sell an "attractive" cross-section of the company in order to avoid increased regulation in Mexico, its owner Carlos Slim said in an interview with Reuters. "Some people say that we are going to sell the low income customers, but nobody will buy that, we are thinking that we should do it in some transversal way...something that is attractive to buyers," Slim said. The sale needs to be big enough to create space for a "competitor all the way, in all the country," he said. Slim did not

NETHERLANDS 26 MAR 2014

America Movil reduces KPN stake below 27%

America Movil has furher reduce its stake in KPN from 27.1 percent to 26.69 percent, according to a filing at the Dutch financial authority AFM. Since America Movil failed in its attempt to acquire KPN in October 2013, the stake has been slowly reduced. At the time, America Movil had a 29.8 percent stake in KPN.

NETHERLANDS 12 FEB 2014

America Movil trims stake in KPN

America Movil said it had a 27.1 percent stake in Dutch operator KPN at the end of 2013, down from the previously announced 29.7 percent. The announcement was made in the publication of its annual results. KPN CEO Eelco Blok told the Financial Times that the company was starting to repair relations with its largest shareholder, after rejecting America Movil's takeover bid last year. He admitted the relationship was "not really good" after the failed bid, but said it has since improved, although "not as good

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.