Dutch telecoms operator KPN has announced that it has completed an ‘accelerated bookbuild offering to institutional investors’ of 150 million shares in Telefonica Deutschland Holding. Priced at EUR5.37 (USD5.78) per share, the exercise generated a total of EUR805 million. Following the successful completion of the transaction, which is anticipated to occur on 12 November, KPN’s stake in the German operator will be reduced from roughly 20.5% to approximately 15.5%. KPN intends to distribute approximately 70% of the proceeds to its shareholders in 2016 as a dividend in the form of a capital repayment, while the remainder will be retained to reduce net debt and strengthen KPN’s financial position.
‘We consider the stake in Telefonica Deutschland as a financial investment, which provides additional financial flexibility,’ commented Eelco Blok, CEO of KPN, adding: ‘Our investment-led strategy is firmly on track and is yielding positive operational and financial results. The partial sell down creates shareholder value and at the same time we maintain attractive exposure to Telefonica Deutschland via our remaining stake.’