AM reclassifies KPN stake as ‘available for sale’

20 Jul 2015

Mexican telecoms group America Movil (AM) has reclassified its 21.1% stake in Dutch operator KPN from a ‘long-term investment valued at cost’ to an asset ‘available for sale’, also valued at cost. According to AM’s Q2 2015 report, as of May this year the shares have been included in the cash and securities item line at a carrying price of MXN39.5 billion (USD2.5 billion), which AM notes is lower than the market value of the shares, which stood at MXN51.4 billion at the end of June 2015.

As previously reported by TeleGeography’s CommsUpdate, in May this year AM completed the placement of around USD3.3 billion worth of senior unsecured bonds in May, exchangeable into ordinary shares in KPN – effectively paving the way for the group to exit its ownership of the Dutch telco, two years after its failed takeover bid.

Netherlands, America Movil (AM), KPN