KPN sets price for discounted rights issue shares
Dutch operator KPN has set parameters for its €3 billion rights issue in a bid to reduce the company's debt.
Under the terms, stockholders will be able to increase its shareholding for a discounted price.
As part of the deal, KPN will offer the opportunity to buy two discounted shares, totalling 2.8 billion additional ordinary shares, for each existing share a stockholder owns between April 26 and May 14.
Shares will be priced at €1.06, compared with KPN's approximate share price of more than €2.50 on the stock market, at the time of writing.
Carlos Slim's América Móvil, which is KPN's largest shareholder will purchase the rights issue shares in line with its 29.77% equity in the company and not increase its stake. Dutch law demands a takeover bid is launched if stockholding in a company reaches above 30%.
KPN's share price dropped following its €1.35 billion spending for 15 separate 4G wireless licences in the Dutch mobile auction. The Dutch operator agreed to sell its IS&P engineering company SPIE Nederland in March to reduce debt.