Published on: 20th Apr 2015
Netherlands based KPN is selling its Belgian subsidiary, Base to a local rival, Telenet for EUR1.33 billion. Base has 3.3 million customers and a service revenue market share of approximately 21% at the end of 2014.
The merged Belgian company will now be able to offer fixed and mobile services in Belgium. Telenet already has around 900,000 mobile customers, on its MVNO, which currently rents airtime from another mobile network, Mobistar. These can be expected to migrate to the Base network once the sale completes, giving the enlarged company a mobile base of around 4.2 million.
In addition to the payment, KPN retains a majority interest in any net proceeds of the claim against Belgacom, which Base will continue to pursue. The sale of Base is subject to merger clearance. In addition, the transaction is subject to other customary terms and conditions including a break-up fee of EUR 100 million payable by Telenet in case the merger control authorities do not approve the transaction.
KPN said that an announcement on the use of proceeds from the sale will be made on completion of the transaction.