KPN buys more of Reggefiber JV
KPN has announced that the second option as part of the Fibre-to-the-Home Reggefiber joint-venture agreement has been exercised. This option became exercisable on January 1st 2014 and completion is subject to approval by the Dutch Competition Authority (ACM). Notification will take place in the coming period.
This option represents an additional 9 per cent equity stake in the Reggefiber joint-venture and will bring KPN’s ownership level to 60 per cent following completion. At 60 per cent ownership KPN will obtain full control and Reggefiber will be consolidated in the financial statements of KPN. This will only take place once the ACM has approved the increase of KPN’s ownership.
The exercise price of the option will be between €116 – 161 million, depending on the level of Capex efficiencies reached at Reggefiber. The exercise price will be determined in the coming weeks.