Dutch telco KPN has completed its €3bn (US$3.86bn) two-for-one rights issue, with 97.4% of offered shares subscribed for in the initial offering and the remainder placed with institutional and professional investors.
KPN announced today that it…
Dutch telco KPN has completed its €3bn (US$3.86bn) two-for-one rights issue, with 97.4% of offered shares subscribed for in the initial offering and the remainder placed with institutional and professional investors.
KPN announced today that it received subscriptions for 2.76 billion of an offered 2.84 billion shares during the subscription period, which ended yesterday. As expected, shares were issued at €1.06 each.
Today, the Amsterdam-based company sold remaining shares in a rump offering at €1.75 per share.
As the proceeds for the rump offering exceed the €0.69 per share issue price, holders of rights that were not exercised at the end of the period are entitled to receive €1.37 for each unexercised right.
Payment and delivery for the rights issue, launched on 25 April and fully underwritten by a syndicate of banks, is set for 17 May. Trading in the offer shares on the NYSE Euronext in Amsterdam will begin the same day.
Upon closing, KPN will have 4.27 billion outstanding ordinary shares.
Announcing the launch of the rights issue in April, KPN said the €1.06 issue price represented a 35.1% discount on the theoretical share price after the transaction. At the time of writing, KPN shares were down 3.25% on yesterday’s closing price at €1.67 each.
The telco said at the time that major shareholder, Carlos Slim’s America Movil had committed to subscribe for the rights pro rata to its 29.77% shareholding.
Joint global coordinators and bookrunners for the issue are Deutsche Bank, Goldman Sachs and JP Morgan. ABN AMRO, ING and Rabobank are also joint bookrunners. Barclays, BofA Merrill Lynch, Citigroup and UBS are co-bookrunners, while BNP Paribas, Credit Suisse,Societe Generale and UniCredit are co-lead managers. Rothschild is acting as the company’s financial adviser.
The rights issue marks the final phase of KPN’s €4bn capital raise, first announced in February. The raise also included hybrid bond issues worth a total €2bn, completed in late March.
