20 February 2013
América Móvil, KPN’s largest shareholder, has agreed to support the Dutch telco’s bid to raise €4 billion in equity capital.
The Latam telecoms group said it
will approve the bid subject to the appointment of two
individuals it designates to KPN’s supervisory
board, among other conditions.
These will be put before a general meeting of shareholders on
América Móvil also said it had reached an
indefinite agreement with KPN not to take its ownership past
the 30% threshold, which would force a buyout offer under Dutch
The fund raising exercise will consist of a €3 billion
rights issue and a €4 billion issue of hybrid capital
instruments, expected to receive partial equity
KPN plans to use the proceeds to reduce its debt and continue
investment in its operations.
América Móvil said in a statement to the Mexican
stock exchange that it was participating in the offer to
strengthen KPN’s capital base, maintain
KPN’s investment rating and allowing the company
to pursue strategic initiatives.
Carlos Slim, the world’s richest man and owner of
the América Móvil group, has
incurred large paper losses since investing €3 billion
in the stake last year, at €3.228 a share.