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Telenet buys Base for EUR 1.325 billion
2015-04-20 08:33:00| Telecompaper Headlines
(Telecompaper) Belgian cable operator Telenet has agreed to acquire the mobile operator Base from KPN for EUR 1.325 billion. The sale price is equal to 8.9 times Base's EBITDA last year. Telenet is already a successful MVNO in Belgium and with Base acquires its own mobile network infrastructure and the number-three spot on the Belgian mobile market. Base has around 3.3 million customers, good for 21 percent of the market at the end of 2014. Telenet said it will raise around EUR 1 billion in debt to help finance the takeover as well as invest EUR 240 million in Base in the coming years. The company expects to realise around EUR 150 million in annual synergies from the takeover, thanks to savings on operational costs and investments and migrating its mobile customers to the Base network. For KPN, the sale marks the end of its international activities and the company will now focus exclusively on its home market the Netherlands.
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Category:Telecommunications