KPN raises stake in Reggefiber to 51%

News Broadband Netherlands 13 NOV 2012
KPN raises stake in Reggefiber to 51%

KPN has increased its stake in Dutch fibre operator and joint venture Reggefiber by an additional 10 percent for EUR 99 million, bringing its total stake to 51 percent. Reggeborgh holds the remaining percentage in the joint venture.

KPN said the move was another important step on its roadmap to strengthen its commitment to FTTH in the Netherlands, together with the acquisition of four fibr service providers in October. 

The amended Reggefiber joint-venture agreement includes three options to increase KPN’s ownership based on a pre-defined timeline alongside operational milestones. In October 2012, Reggefiber reached the milestone of 1.0 million homes connected and consequently the first option became exercisable. Following this transaction, Reggefiber will not be consolidated. 

KPN and Reggeborgh agreed that KPN could take its stake in the joint venture to 60 percent from 1 Januari 2014, or when Reggefiber reaches 1.5 million homes connected. The move will cost EUR 116-161 million, depending on capex. Competition authority NMa would also have to give its green light. A few years after that, KPN will be able to bring its stake to 100 percent for EUR 647 million.

Categories:

Fixed,  Internet

Companies:

KPN,  Reggefiber

Countries:

Netherlands

Tags:

Fibre, Corporate strategy, M&A buyouts & divestments

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