Incumbent KPN plans to acquire four local fibre service providers and one wholesale operator from local investment group Reggeborgh and their JV Reggefiber.
Subject to regulatory approval, the group aims to acquire Reggeborgh’s three fibre service…
Incumbent KPN plans to acquire four local fibre service providers and one wholesale operator from local investment group Reggeborgh and their JV Reggefiber.
Subject to regulatory approval, the group aims to acquire Reggeborgh’s three fibre service providers: Edutel, XMS, and Concepts ICT.
KPN also plans to take over fibre service provider Lijbrandt and wholesale operator Reggefiber Wholesale from Reggefiber, which is a network manufacturing JV that KPN shares with Reggeborgh.
KPN declined to disclose financial details, or an expected time frame for the deals.
In a brief statement, Eelco Blok, KPN’s CEO, said: “Today’s announcement forms an integral part of our wireline strategy. KPN believes that FttH is an important long-term technology and provides regional strength in the medium-term.”
In addition, KPN announced amendments to its Reggefiber JV to allow it to ultimately take full control of the venture.
KPN has held a 41% stake in Reggefiber since 19 December 2008, with Reggeborgh owning the remaining shares. The Dutch incumbent now has the opportunity to increase its share to a total 60% via staged options.
The first option, which can be exercised from 31 December 2012, or if Reggefiber connects one million homes to fibre, would see KPN increase its share by 10% for €99m. The second option, which can be exercised from 1 January 2014 or if Reggefiber connects 1.5 million homes, would see it increase the stake by a further 9% for €116m-€161m.
Reggefiber had connected 687,000 homes at the end of Q3 2011. KPN does not expect to exercise its second option before January 2014.
