KPN Shareholders Approve Sale of E-Plus to Telefonica
Published on: 2nd Oct 2013
Note -- this news article is more than a year old.
KPN's shareholders have approved the deal to sell the company's German subsidiary, E Plus to Telefonica Germany.
However, KPN managers were criticized by a number of shareholders at the meeting over the company's poor performance in recent years.
KPN's CEO, Eelco Blok also declined to comment on the talks with 30% shareholder, America Movil over its planned EUR 7.2 billion offer to buy the company.
Now that shareholders have approved the E-Plus sale, once it secures regulatory approval, KPN will receive EUR 5 billion in cash and a 20.5% stake in the enlarged Telefónica Deutschland.
Shareholders wont see the money though, as it will be used to pay down KPN's debt, although the company said that it is its intention to recommence dividend payments to its shareholders for the financial year 2014.
KPN said that the deal will leave it with a strong credit profile, and the sale will allow KPN to focus on The Netherlands and Belgium.