Dutch incumbent KPN has received regulatory clearance to raise its stake in FTTH operator Reggefiber from 51% to 60%.
At the start of January, KPN announced it had agreed to buy an extra 9% of Reggefiber from its partner in the joint venture, investment…
Dutch incumbent KPN has received regulatory clearance to raise its stake in FTTH operator Reggefiber from 51% to 60%.
At the start of January, KPN announced it had agreed to buy an extra 9% of Reggefiber from its partner in the joint venture, investment firm Reggeborgh, to give it full control of the business and consolidate it in its financial statements.
But in May, the Dutch consumer and market authority (ACM) decided to investigate the deal because it could void the conditions imposed upon Reggefiber in 2008 for the management of its open fibre-optic network, potentially limiting other companies’ access.
KPN has now reassured the regulator and expects to close the €161m (US$202m) deal on 3 November.
In a statement Joost Farwerck, managing director of KPN’s Netherlands’ business, said he was pleased with the ACM’s decision and promised that he would continue its open access strategy.
“The consolidation of Reggefiber fits perfectly in KPN’s hybrid upgraded copper/FTTH strategy and marks another important step to strengthen KPN’s commitment to FTTH in the Netherlands.”
Reggeborgh still has the option to exit the business. It can trigger an option to sell the remaining 40% of its shares to KPN from 2 July 2017 for an 18-month period at a price of €647m (US$814m). The option can also be exercised at fair value until 1 January 2021.
Founded in 2005, Reggefiber operates in 200 Dutch municipalities and claims to connect more than 1.6 million households.