Belgium’s minister for telecoms is reportedly preparing the legal framework to privatise long-time takeover target Belgacom.
Alexander De Croo is looking to amend previous legislation from 1991 which dictates that the government has to own 50% plus…
Belgium’s minister for telecoms is reportedly preparing the legal framework to privatise long-time takeover target Belgacom.
Alexander De Croo is looking to amend previous legislation from 1991 which dictates that the government has to own 50% plus one share of the incumbent, Brussels-based newspaper De Tijd reported.
The state currently has a 53.5% stake in Belgacom, which operates as Proximus. The report suggested it could raise some €6bn through a privatisation, although the government could elect to retain a blocking minority stake.
Speculation around likely suitor Dutch operator KPN has heightened following its agreement to sell local cellco Base to Liberty-owned Telenet, allowing it to pursue a takeover of Belgacom.
The Brussels-based operator has been viewed as a takeover target for many years, but political conditions in Belgium had led bankers to say that a sale of the telco was impossible. However, in 2014 a centre-right coalition government was formed – which includes De Croo’s Open VLD party – making a privatisation viable.
Belgacom’s share price fell more than 2% following the publication of the report. It now has a market capitalisation of €10.9bn.
