KPN has dropped plans to sell Belgian unit Base. The company said that the current difficult financial market conditions were reflected in the unsatisfactory non-binding offers it received for the unit.
KPN announced on 21 June that it had completed its strategic review of Base and that the unit would go on sale in July. KPN added at the time that it would only sell the unit for the right price.
KPN said that the non-binding offers did not take the strong position and outlook of Base into account, with its successful 'challenger' strategy and strong revenue growth, attractive margins and excellent momentum for continued upside. The Dutch operator added that it remains committed to maintaining a “prudent financial framework and creating value for all shareholders.”
KPN received non-binding offers from De Persgroep, Telenet, Blackstone, Providence and Cinven, according to Reuters. The bidders said Base could fetch EUR 1.4-1.7 billion, or 5-6 times its estimated EBITDA of EUR 280 million for 2012.
Telenet later announced that it would not likely pursue any acquisitions in the coming time but instead use cash for share buy-backs as a way to reward shareholders.
Base attracted little private investor interest: as a well managed unit, the Belgian operator could yield only little extra value.
KPN began the sale of Base after America Movil acquired a large stake in the Dutch operator. KPN saw the sale as a way of defending itself against the Mexican operator owned by Carlos Slim. America Movil has meanwhile offered no formal comment on the sale of Base.
