Koninklijke KPN NV
20 August 2007
KPN to acquire Tele2 / Versatel Belgium
KPN announces today that it's wholly owned subsidiary KPN Mobile International
B.V. has entered into an agreement with Versatel Telecom International N.V. and
Versatel Nederland B.V., for the acquisition of Tele2 Belgium N.V. and Versatel
Belgium N.V. (together 'Tele2 Belgium') for a consideration of Euro 95 million
on a debt and cash-free basis.
This acquisition will allow KPN's mobile subsidiary BASE to further expand its
regional distribution reach in Belgium, while driving further revenue growth
through cross-selling and up-selling opportunities, which will also include
bundled product offers. Tele2's substantial residential subscriber base in
specific regions and its deeply rooted position in the B2B market, will allow
BASE to expand and grow its presence in Belgium as a result of this acquisition.
Commenting on the transaction Stan Miller, Member of the Board of KPN and CEO of
its International activities said:
'Over the last 5 years, BASE has become the leading challenger mobile company in
Belgium and Europe in terms of growth and margin. It has increased its market
share from less than 10% to more than 22%. Through this acquisition along with
the recently announced purchase of Allo Telecom, I am confident that BASE now
has the distribution and sales capability to continue to grow its business in
Belgium in a profitable way. I believe that fixed-mobile substitution together
with bundled broadband offerings will provide BASE with a competitive advantage.
BASE will continue to grow its mobile and broadband offerings through
partnerships, which remain a core part of its strategy.'
KPN intends to run Tele2 Belgium independently from BASE. The transaction is
subject to approval from the Belgian competition authorities. Lazard acted as
financial advisor to KPN on this transaction.
About Tele2 Belgium
Tele2 Belgium offers voice, internet and data services to residential, business
and carrier customers. Tele2 Belgium operates its own DSL infrastructure with a
fibre backbone of 1,800km across Belgium. At the end of the second quarter of
2007, Tele2 Belgium reported 131,000 residential and business DSL lines
(including dual play 'Tele2 ALL IN') and 190,000 residential CPS subscribers.
The company also offers telecom solutions to more than 9000 B2B customers
ranging from large corporations to SME's, and to 70 carrier and reseller
customers who benefit from the extensive infrastructure deployed originally by
Versatel Belgium. In 2006, Tele2 Belgium's pro forma net sales amounted to Euro
162.4 million. The Company currently has approximately 180 employees.
This information is provided by RNS
The company news service from the London Stock Exchange