KPN has received regulatory approval to acquire an additional 9% stake in Reggefiber from joint-venture partner Reggeborgh, bringing its total ownership in the FttH operator to 60%.
At 60% ownership KPN obtains full control and Reggefiber will be 100% consolidated in the financial statements of KPN as per November 1, 2014. The exercise price of the second option has been set at EUR161 million. Completion of the transaction is expected on November 3, 2014.
“We are pleased that ACM has approved the increase of our shareholding in Reggefiber,” said Joost Farwerck, member of the board of management, KPN.
“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. This, together with the operational synergies, will provide further support for the execution of our strategy in The Netherlands. Finally, I would like to reiterate that KPN will continue its open access strategy.”
Reggeborgh retains a third option to sell the remaining 40% of its shares in Reggefiber to KPN. This option can be exercised per July 2, 2017, over a period of one and a half years, for EUR647 million. Alternatively, this option can also be exercised at fair value until January 1, 2021.