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KPN Sees Strong Interest in Sale of Belgian Subsidiary
Published on:
Netherlands based KPN is reported to have received significant levels of interest regarding the planned sale of its Belgian subsidiary, Base. The company the smallest mobile network in Belgium in terms of subscriber numbers.
KPN put Based up for sale as part of a financial review sparked America Movil's bid to buy a 28% stake in the company. America Movil is understood to oppose the sale.
Citing people familiar with the issue, Reuters news agency named five companies as submitting non-binding bids to buy Base. The bidders include Belgian media group De Persgroep, cable company Telenet and private equity firms Blackstone, Providence and Cinven.
Debt laden KPN is looking to raise upwards of EUR 1.7 billion from the sale, although it has said that if offers are below expectations then it may cancel the tender.
Belgium is the base for the European Union, and the high value roaming traffic had been expected to make the company appealing to the larger European operators looking to tap into corporate and government contracts.
Private equity bidders are expected to be tying up with other companies for their bids as they are unlikely to be able to strip out costs from the well-run company on their own.
On the web: Reuters
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