Royal KPN NV said Monday it is selling BASE Company to Telenet
Group Holding NV for EUR1.33 billion ($1.42 billion) in cash,
allowing it to fully focus on its integrated access strategy in the
Netherlands.
The Dutch telecom firm said it would use the money raised from
the sale to create maximum value for shareholders, without giving
any further detail. It said a further announcement will be made on
completion of the transaction.
"Our continued good progress is expected to result in a
stabilized adjusted [earnings before interest, taxes, depreciation
and amortization] Ebitda by end-2015, a growing free cash flow and
a growing dividend," Chief Executive Eelco Blok said.
BASE Company is a mobile business with 3.3 million customers and
a service revenue market share of 21% at the end of 2014.
Earlier this month KPN said it is exploring "all of its options"
for BASE, its Brussels-based subsidiary.
The statement followed reports in Belgian media that local cable
operators Telenet and Voo were preparing a joint bid for the
business.
Write to Ian Walker at ian.walker@wsj.com
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