KPN exchanges portion of Telefonica Deutschland holding for Telefonica shares

Netherlands-based KPN has announced the inking of an agreement with Spain’s Telefonica under which it will exchange 178.5 million shares in Telefonica Deutschland Holding for 72.0 million shares in the Spanish telecoms giant, representing approximately 1.4% of the latter company’s share capital. In a press release confirming the development it was noted that the exchange ratio had been determined based on the average of the volume weighted average price (VWAP) of the respective shares during the last five trading days. As a result of the transaction KPN’s stake in Telefonica Deutschland’s outstanding share capital will be reduced from approximately 15.5% to around 9.5%. Looking ahead, KPN has said it intends to reduce its stake further ‘over time with a value-driven focus, and subject to the orderly sale provisions agreed with Telefonica’.