Telenet to acquire KPN’s BASE for €1.325 billion
20 April 2015 |
Liberty Global’s Telenet has agreed to acquire Belgian MNO BASE from KPN for €1.325 billion ($1.43 billion).
The deal will enable BASE to offer fixed and mobile services in Belgium, and create a much stronger player in the market.
In August 2012, Telenet ruled out the option of acquiring BASE, but today’s deal will create an MNO with estimated sales of €2.4 billion and adjusted operating earnings of €1.1 billion.
“We fully support Telenet’s acquisition of Base, which represents a cost-effective and unique opportunity to expand Telenet’s mobile and fixed business in Belgium,” said Mike Fries, CEO at Liberty Global – which holds a 57% stake in Telenet.
Fries added that the synergies between the two firms were “substantial” and said that given Telenet’s scale in Belgium, it would be able to absorb the BASE business quickly and efficiently.
“Elsewhere in Europe we will continue to focus primarily on our existing MVNO arrangements and rapidly developing Wifi networks to provide seamless mobile voice and data services to our customers.”
“This transaction not only shows our commitment to realise an attractive return for our shareholders, but also positively contributes to BASE Company’s market positioning,” said Eelco Blok, CEO at KPN.
“We are strong believers in convergence and are delivering very good results with our fixed-mobile product offerings in The Netherlands, with customer base growth and increasing customer satisfaction.”