KPN to sell German mobile towers for €393 million
Dutch operator KPN has agreed to sell its German mobile tower assets for €393 million as it seeks to keep growing debt under control.
KPN is one of many European operators that have been hit by Europe’s poor economic situation and a growing change in consumer trends. The company has already breached its targets for debt in its Q2 results, and cut its 2012 dividend outlook.
The sale of its tower business in Germany is seen as a way of reducing its debt burden, and KPN has struck a deal with American Tower Group, which is expected to lead a gain of €100 million.
KPN took the decision in late October to sell its Dutch mobile phone towers business for a profit of €66 million.
KPN has widely claimed it does not need to own the towers to support its network. Ratings agency Moody’s, although holding a negative outlook for the company, still reports the company at investment grade.
According to Reuters, KPN CEO Eelco Blok is prepared for a lower credit rating, providing the company can continue investing.
It is thought the company will need access to capital with an impending spectrum auction in the Netherlands in mind.