KPN to Pay €610 Million for Remainder of Reggefiber

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Dutch telco takes over FTTH firm, pledges to continue with hybrid copper/fibre broadband strategy.

KPN this week announced that it has brokered a deal to take 100% ownership of Dutch fibre-to-the-home (FTTH) outfit Reggefiber.

It has agreed to pay €610 million for the 40% stake in the company held by its joint venture partner Reggeborgh.
The Dutch incumbent’s involvement in Reggefiber dates back to 2008. Two years ago it increased its stake to 51% from 41% and at the start of this year said it would exercise an option to buy a further 9%, enabling it take control of the business and consolidate the fibre provider’s financials in its own. It received the regulatory thumbs-up for that €161 million move in late October and Reggefiber was included in its financial statements from 1 November.

On Thursday it noted that it will fund the acquisition of the final 40% using proceeds from the sale of its E-Plus business in Germany.

Telefonica closed the acquisition of E-Plus on 1 October, folding the mobile unit into its German business. KPN received €5 billion in cash and a 20.5% stake in the merged entity.

KPN said it will redeem around €500 million worth of Reggefiber debt in the current quarter. Original post at Total Telecom

Wahengbam Rorrkychand

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Website: http://www.blog.tonsetelecom.com

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