KPN, Netherland’s leading telecom carrier, has announced plans to buy rival mobile operator Telfort for up to 1.12 billion euro.
The country’s third biggest mobile phone carrier after KPN and Vodafone, Telfort will be sold for 980 million euro, although the amount could increase by up to 140 million euro if Telfort’s performance meets certain targets. KPN plans to integrate Telfort’s network. It will take on the firm’s more than 900 million euro of net operating losses. The acquisition price is on a debtand cashfree basis. The deal will be financed from available funds and does not endanger KPN’s financial covenants. The deal is expected to give KPN 2.4 million additional Dutch mobile customers.
