KPN rejects 18bn acquisition from EQT and Stonepeak
KPN has refused to receive nearly $ 18bn from its agency over the past two weeks, forcing reimburses to increase the cost of providing the Dutch telephone service.
EQT and the Stonepeak Infrastructure Partner have been around KPN since last year and began working hard early last month, according to a number of people familiar with the negotiations.
He made the request but was rejected by the KPN committee, the two now considering whether to increase their contributions, according to someone who is well aware of the situation.
EQT and Stonepeak are planning a 3-a-share acquisition that would appreciate the company for around € 12.5bn. The company has a debt of € 5.2bn, with profits of approximately € 18bn at that rate. Much of what he has to offer was first reported by the Wall Street Journal.
KPN shares were closed last week for € 2.87 after selling at a discounted price of € 2 prior to the transaction report.
Such a partnership could be one of Europe’s largest ever-selling brands, many from the Refinitiv exhibition. Advent International and Cinven last year bought the Thyssenkrupp carrier business in € 17.2bn an alliance that was the largest in years.
EQT declined to comment. Stonepeak and KPN did not immediately respond to a request for comment.
Joost Farwerck, KPN’s chief executive, said last week that any private donations should be considered for the benefit of employees and customers as well as shareholders.
Farwerck described KPN’s financial performance in upgrading its networks as a sign of growth. “We’re going to make a lot of money, maybe not more than 12 months from now, but for a few years,” he told reporters.
KPN has set up a network to connect its fiber networks to 80% of the Dutch population by 2026 after forming a joint venture with APG, the Dutch pension fund.
Siyi He, a researcher with Citi, said in the letter that the development of the fiber program over the next three years should commend KPN at a cost of 3.5 euros, which is why the agreement seemed possible.
The biggest obstacle to buying is the Dutch government and if it will allow financial institutions to have more wealth. A Dutch soldier in Dutch described this as an “impossible alliance” as those who want to bet need to negotiate with a government-sponsored group, which could end any violent alliance.
KPN has always been seen as a participant but those who want to buy have been hampered by politics.
América Móvil, a Mexican phone company run by billionaire Carlos Slim, tried to acquire KPN for € 7.2bn in 2013 but was still closed and intervening of an independent foundation connected by a telecom team. Slim still owns one-fifth of KPN shares and in February raised 2.1bn bonds through a Dutch corporation that could be converted into shares in the telecommunications company.
Stockholm EQT officials already have telecoms in Europe, with Delta Fiber, a slight rival to KPN in the Netherlands, as well as telecom equipment in Germany and Sweden. It agreed to a $ 3.3bn deal last month to buy US FirstGroup bus services at its own expense. Units, First and First Student, includes thousands of thousands of yellow buses.
Stonepeak from New York is focused on North American cooperation.