Dutch telco KPN plans to launch the sales process for Belgian unit Base in July, the company said.
In its official position statement on America Movil’s (AMX’s) unsolicited tender offer, published on Thursday after market close, KPN also…
Dutch telco KPN plans to launch the sales process for Belgian unit Base in July, the company said.
In its official position statement on America Movil’s (AMX’s) unsolicited tender offer, published on Thursday after market close, KPN also reaffirmed its earlier contention that AMX’s €8 per share offer to boost its stake to up to 27.7% “significantly undervalues” the company and does not offer an acceptable premium for gaining such a sizeable interest. As such, it still recommends investors do not accept the offer from Carlos Slim’s telecoms group.
The Dutch telco said that, having completed a strategic review of Base, its boards has decided to start the sale process in July and will use the proceeds “to improve KPN’s profile and financial flexibility”.
Despite conceding yesterday (20 June) that talks regarding the sale of German unit E-Plus had ended, KPN said it is still working toward further consolidation within the German market.
“KPN has an even stronger belief in the potential significant synergy value which could be created through in-market consolidation in Germany and is convinced that other parties share this view,” the company stated.
“However, the current adverse conditions in financial markets have meant that no agreement could be reached at this point in time.”
The telco noted that its strategy to strengthen, simplify and grow its businesses is on track, adding that it expects the accelerated rollout of broadband networks in Belgium and Germany to support positive growth.
The KPN Boards emphasize that the current and potential future value of KPN is not reflected in the unsolicited partial offer by América Móvil,” the company stated.
