Canada’s Brookfield could bid for KPN in partnership with Dutch funds

1 Feb 2019

Canadian alternative asset manager Brookfield Asset Management is considering placing an offer for Dutch telecoms group KPN, reports Bloomberg citing anonymous sources familiar with the matter. According to the report, Brookfield – which manages assets worth over USD330 billion – is in preliminary talks with Dutch pension funds PGGM and APG Groep about partnering on a potential bid, but has not yet approached KPN, the sources said. Shares in KPN (full name Koninklijke KPN [Royal KPN]) have been listed on the Amsterdam stock exchange (Euronext) since 1994. Mexican telecoms group America Movil (AM) failed in a takeover bid in 2013 but continues to hold a 16% KPN stake, with other shares widely distributed to US, European and rest-of-world investors. KPN has a market value of approximately EUR10.6 billion (USD12.2 billion).

In recent telecoms sector moves, on 1 January 2019 Toronto-based Brookfield closed a USD1.1 billion acquisition of US giant AT&T’s data centre colocation operations and assets including 31 data centres (18 in the US and 13 elsewhere) and established a wholly owned subsidiary, Evoque Data Center Solutions, to own and operate the assets. The previous quarter, in October 2018 Brookfield and institutional investor partners acquired a majority voting stake in Irish fixed-wireless broadband operator Imagine Communications.

Netherlands, America Movil (AM), Brookfield Infrastructure Partners, KPN