Dutch incumbent KPN is set to acquire local cableco Caiway for an undisclosed sum.
A KPN spokesman declined to reveal the deal’s financial details, but told TelecomFinance that the acquisition was being paid for through its existing resources.
In a…
Dutch incumbent KPN is set to acquire local cableco Caiway for an undisclosed sum.
A KPN spokesman declined to reveal the deal’s financial details, but told TelecomFinance that the acquisition was being paid for through its existing resources.
In a statement, KPN said it had reached an agreement to acquire the country’s fourth largest cableco from its current shareholders, Dutch real estate firm Rabo Bouwfonds’ Communication Infrastructure Fund (CIF) and Caiway’s management.
“The acquisition fits within KPN’s strategy to strengthen its position in the Dutch television and broadband market,” the company stated.
“KPN will provide ‘open access’ to other operators and service providers which fits KPN’s philosophy of ‘open access’ cable, fibre and other telecom networks.”
However, the deal is still subject to approval by Dutch competition authority NMa.
Last month, outgoing CEO Ad Scheepbouwer told journalists that he expected consolidation would return to the European telco market in a few years, as governments seek to cut debt and operators review their portfolio of assets.
“[Telcos] will start to rationalize. This will cause a certain consolidation, because they will have to start managing their assets lean and mean,” said Scheepbouwer.
Scheepbouwer, who ended his ten-year reign at the helm of KPN on 6 April, has been replaced as CEO by Eelco Blok, who first joined KPN’s Board in 2004 and previously oversaw its international operations.
Caiway was unable to comment before the press deadline.
