Dutch incumbent KPN has agreed to buy the remaining 40% of FTTH operator Reggefiber that it does not already own for €610m (US$764m).
KPN also plans to redeem €500m of Reggefiber’s debt before the end of the year.
The Dutch telco already has full…
Dutch incumbent KPN has agreed to buy the remaining 40% of FTTH operator Reggefiber that it does not already own for €610m (US$764m).
KPN also plans to redeem €500m of Reggefiber’s debt before the end of the year.
The Dutch telco already has full control of Reggefiber, which is 100% consolidated in its financial statements, after the Dutch competition regulator permitted it to raise its stake from 51% to 60% at the end of October.
KPN is using cash from its sale of German mobile operator E-Plus to buy out Reggeborgh, its joint venture partner in Reggefiber.
KPN said the consolidation was in line with its strategy to use the majority of the proceeds from the €8.6bn (US$11.3bn) E-Plus sale to boost its financial flexibility, and its operations in the Netherlands and Belgium.
In a statement, Joost Farwerck, managing director of KPN’s Netherlands’ business, said his company would make use of the “vast amount of expertise” present in Reggefiber’s management.
“The efficient way of building and operating a passive infrastructure, the local operational approach and the FTTH knowledge centre will be of great value to KPN’s operations,” Farwerck said.
Founded in 2005, Reggefiber operates in 200 Dutch municipalities and claims to connect more than 1.6 million households.
