Dutch telco KPN has exercised a second option to increase its stake in Reggefiber, a local fibre-to-the-home (FTTH) joint venture, to 60%.
The deal, which requires approval by the Dutch competition authority, represents an additional 9% interest for KPN…
Dutch telco KPN has exercised a second option to increase its stake in Reggefiber, a local fibre-to-the-home (FTTH) joint venture, to 60%.
The deal, which requires approval by the Dutch competition authority, represents an additional 9% interest for KPN in the JV.
Its partner, private investment company Reggeborgh, will therefore see its interest in the company drop to 40%.
The Dutch operator said in a statement that “at 60% ownership, KPN will obtain full control and Reggefiber will be consolidated in the financial statements of KPN”.
It added that the option price, to be determined in the next few weeks, will be between €116m and €161m (US$158m and US$220m), depending on the level of capex efficiencies reached at Reggefiber.
In November 2012, KPN increased its stake in the FTTH company from 41% to 51% for €99m. The JV partners had earlier agreed that KPN would have the option to boost its ownership based on a pre-arranged timeline and operational milestones.
Recently, in October, Reggefiber completed a €84.5m (US$114.7m) private bond placement to private equity firm Aviva Investors.
Reggefiber said it intends to use the proceeds to refinance a short-term construction bridge facility and expand its FTTH networks.
The transaction, arranged by ABN AMRO, marked Reggefiber’s first capital markets transaction.
