America Movil (AMX) launched after market close yesterday its partial cash tender offer for KPN shares, in order to raise its stake in the Dutch telco from 4.8% to up to 27.7%.
As previously announced, Carlos Slim’s AMX offers €8 (US$9.95) per KPN…
America Movil (AMX) launched after market close yesterday its partial cash tender offer for KPN shares, in order to raise its stake in the Dutch telco from 4.8% to up to 27.7%.
As previously announced, Carlos Slim’s AMX offers €8 (US$9.95) per KPN share.
AMX currently holds 68,283,000 shares in KPN and, according to the terms of its offer memorandum, may hold up to 325,000,000 shares at the close of the proposed transaction.
KPN responded to the launch of the offer by repeating an earlier statement that it regards the €8 per share offer price as too low. A more detailed response by KPN is expected shortly.
According to AMX, the offer price of €8 per share, which equals total investments of €2.05bn (US$2.6bn) if it increases its stake to 27.7%, implies a premium of about 23.5% over the closing price on 7 May, the last trading day before AMX announced its intention to make the offer.
KPN renewed earlier comments that, while its board will carefully review the partial offer in accordance with its fiduciary duties, it will also continue to explore its “strategic options”.
The acceptance period for AMX’ offer runs until 27 June and is not subject to a minimum acceptance threshold. A possible subsequent post acceptance period may enable KPN stakeholders to tender their shares at a later date.
AMX stated in the memorandum that it had rejected “key terms suggested by KPN in relation to the potential 28% stake”, that KPN had submitted on 19 May.
However, AMX also noted that it supports KPN’s plans as they have been communicated to date and that it does not intend to discontinue its business operations or change its place of registered office.
Deutsche Bank is acting as AMX’ financial advisor for the matter. KPN has mandated Goldman Sachs and JP Morgan.
