Dutch operator, KPN announced the floating of 150 million shares in Telefónica Deutschland(TEFD) to institutional investors, representing approximately 5.0% of Telefónica Deutschland’s outstanding share capital, for EUR 805 million.
KPN holds in total approximately 610 million shares in TEFD’s outstanding share capital, representing about 20.5% share in the company. Upon the completion of the transaction, this stake will be reduced to approximately 15.5%.
KPN intends to distribute about 70% of the proceeds of the sale to its shareholders in 2016 as a dividend in the form of capital repayment. The remainder of the proceeds will be retained to reduce its net debt and strengthen KPN’s financial position.
Eelco Blok, CEO, KPN
We consider the stake in Telefónica Deutschland as a financial investment, which provides additional financial flexibility. Our investment-led strategy is firmly on track and is yielding positive operational and financial results. The partial sell down creates shareholder value and at the same time we maintain attractive exposure to Telefónica Deutschland via our remaining stake.
