Carlos Slim’s America Movil (AMX) is set to submit an offer memorandum to the Dutch financial markets authority, having secured the funds to pay for the shares in telco KPN it does not already own.
Mexico-based AMX announced today that it has entered…
Carlos Slim’s America Movil (AMX) is set to submit an offer memorandum to the Dutch financial markets authority, having secured the funds to pay for the shares in telco KPN it does not already own.
Mexico-based AMX announced today that it has entered into binding credit facilities with “reputable global financial institutions” to finance the transaction. Earlier this month, AMX announced it intends to offer €2.40 per share for around 70% of KPN shares, equal to a total €7.2bn (US$9.6bn). This values the entire company at €10.2bn.
AMX said today that it will submit an offer memorandum to the Dutch authority, Stichting Autoriteit Financiele Markten (AFM), after this morning’s announcement. America Movil expects the offer to proceed in September.
KPN’s view of AMX’s intended takeover, which is conditional upon AMX winning a stake of more than 50%, remains unclear. The Dutch telco issued a brief statement in early August saying its boards would consider the offer in line with their fiduciary duties and commitment to all stakeholders, adding that they would explore “all strategic options”.
About a week later, the Amsterdam-based telco’s independent foundation, Stichting Preferente Aandelen B KPN, expressed reservations about the takeover. The foundation, which has the power to block the deal, said in a statement that it had concerns about AMX’s intentions for KPN given its “only briefly clarified” intended offer.
The foundation is also concerned about AMX’s position on KPN’s strategic development and proposed sale of German mobile unit E-Plus to Telefonica Deutschland (O2) for €8.1bn.
AMX’s intended offer has cast doubt over whether KPN will be able to go ahead with the E-Plus sale, first announced in late July.
Today, shortly after AMX’s announcement, the Dutch telco said that its shareholders will vote on the E-Plus sale at an EGM on 2 October. AMX, which is KPN’s largest shareholder with a 29.77% stake, has not said how it will vote but its offer for KPN may come too late to be able to influence the E-Plus deal. However, reports suggest that given the traditionally attendance at KPN’s EGM, America Movil may still be able to block the sale.
