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KPN to increase Reggefiber stake to 60%

2014-01-03 10:48:00| Telecompaper Headlines

(Telecompaper) KPN has exercised an option to increase its stake in Reggefiber, its FTTH joint venture with Reggeborgh. KPN will acquire an additional 9 percent stake in the company, taking its holding to 60 percent. The price will be finalised in the coming weeks and is expected to range from EUR 116 to 161 million. The price depends on the amount of capital expenditure savings at Reggefiber. If the acquisition secures regulatory approval, KPN will fully consolidate Reggefiber's results. KPN could exercise the option after the start of 2014 or when Reggefiber achieved 1.5 million homes connected. KPN started with a 41 percent stake in the venture in 2008 and received several options to gradually increase its stake. Within 3.5-5 years, Reggeborgh can sell the remaining 40 percent to KPN. This may happen as early at 01 July 2017, for a price of EUR 647 million. After seven years, the price will be negotiated according to market rates.

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Category:Telecommunications

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