KPN’s largest investor, the US-based Capital Group, reportedly wants the Dutch telco to fully monetise its German unit, E-Plus, possibly by selling it.
The Capital Group, which owns KPN shares via various funds, has been disappointed with KPN’s…
KPN’s largest investor, the US-based Capital Group, reportedly wants the Dutch telco to fully monetise its German unit, E-Plus, possibly by selling it.
The Capital Group, which owns KPN shares via various funds, has been disappointed with KPN’s share performance since November last year and envisages a sales of E-Plus as a possible solution, news agencies reported, citing an unsourced article in Dutch newspaper Het Financieele Dagblad.
According to the NYSE Euronext website, Capital Research and Management has a 15.11% stake in KPN, while Capital Income Builders has a 5.08% stake.
Capital Group’s demand appears to be at odds with those of America Movil (AMX), which currently has a 4.8% stake in KPN but intends to increase it to 28%.
Announcing its intended €3.2bn offer earlier this month, AMX highlighted the importance it places on “geographical diversification”.
If successful, the acquisition would mark the group’s first significant investment in Europe.
Reacting to the AMX offer, KPN, which reported disappointing financial results for 2011, said its board would “explore all strategic options” for the company and has mandated Goldman Sachs and JP Morgan to act as its financial advisers on the matter.
KPN confirmed in mid-April that it is also considering strategic options for its Belgian unit, BASE, which media reports have stated has attracted private equity interest.
A recent Reuters report citing unnamed sources said the telco is also considering selling E-Plus.
Meanwhile, on 8 May, a report in German weekly Der Spiegel claimed E-Plus plans to sell thousands of towers to a private equity investor and is already in talks with potential buyers. At the time a spokesperson refused to comment, citing company policy.
KPN and the Capital Group were not immediately available for comment.
