KPN completes sale of Telefonica Deutschland shares

14 Jun 2019

Dutch telecoms company KPN has announced it has completed the sale of its remaining shares in Telefonica Deutschland Holding. The proceeds will be retained to increase operational and financial flexibility.

In July 2013 KPN agreed to sell its German mobile operator E-Plus to Telefonica Deutschland – owned by Spain’s Telefonica – for EUR8.55 billion (USD9.6 billion), according to TeleGeography’s GlobalComms Database. KPN received EUR5.0 billion in cash and a 20.5% stake in the combined entity post transaction. Final EC approval was received in August 2014 and the deal was completed on 1 October.

Since then, KPN has gradually reduced its stake, completing an ‘accelerated bookbuild offering’ to institutional investors of 150 million shares in November 2015, generating a total of EUR805 million and trimming its stake to 15.5%. In March 2017 KPN exchanged 178.5 million shares in Telefonica Deutschland for 72.0 million shares in Telefonica, representing 1.4% of the Spanish company’s share capital. The move reduced KPN’s stake in Telefonica Deutschland to 9.5%, and Telefonica’s ownership rose from 63.2% to 69.2%; KPN’s stake had declined to 8.6% by the year-end, to 4.4% at end-2018 and to 3.5% three months later.

Germany, KPN, Telefonica Deutschland Holding