Belgian cableco Telenet is reportedly seeking a private equity partner to make a joint bid for Dutch telco KPN’s local mobile unit Base.
Brussels-based Telenet is in talks with several private equity firms about submitting a potential joint bid,…
Belgian cableco Telenet is reportedly seeking a private equity partner to make a joint bid for Dutch telco KPN’s local mobile unit Base.
Brussels-based Telenet is in talks with several private equity firms about submitting a potential joint bid, Reuters reported, citing unidentified people familiar with the matter. The report quoted its sources as saying Telenet, in which Liberty Global has a controlling stake, has mandated Lazard and Goldman Sachs to advise it on the matter.
Telenet’s possible partners include Blackstone, Cinven, Providence, Bain and KKR, the report stated.
Telenet declined to comment.
Following America Movil’s (AMX’) announcement earlier this month that it would pay up to €3.2bn to boost its stake in KPN to 28%, the Dutch telco declared it had hired Goldman Sachs and JP Morgan to advise it on its strategic options. KPN contended the Mexican telecoms group’s offer significantly undervalued the company.
In mid-April, KPN had confirmed it was considering “strategic options” for Base, Belgium’s third largest mobile operator, already rumoured to have attracted the interest of several private equity firms.
A recent Bernstein report speculated KPN may attempt to sell assets now so it is more expensive and less attractive to AMX. Estimating Base is worth €1.4bn to €1.8bn, Bernstein said a sale would help KPN, which posted disappointing financial results for 2011, reduce net debt, improve its chances of being able to pay a dividend in the near term and afford it greater flexibility in the Netherlands’ upcoming spectrum auction.
Bernstein noted Base would be a good structural fit for Telenet, which has a mobile licence in Belgium but lacks wireless network infrastructure. Such a merger could also help pave the way for an eventual combination with Belgacom, the report stated, although it added this is unlikely to happen before AMX’ planned tender.
However, Bernstein said the parties could commence formal talks, thereby “muddying the waters and potentially complicating AMX’ bid”.
Meanwhile, a mid-May news agency report citing a Dutch newspaper said KPN is under pressure from its largest investor, the US-based Capital Group, to fully monetise its German unit, E-Plus, potentially by selling it.
