KPN sells part of its German mobile towers portfolio
KPN has entered into an agreement with American Tower Corporation to sell a portfolio of mobile towers in Germany for a cash consideration of EUR 393 million, resulting in an expected book gain of around EUR 100 million. KPN will use the cash proceeds of this transaction to continue to invest in the accelerated mobile network roll-out in Germany and to improve its net debt position. KPN continues to strive for a balance between a prudent financial framework, investments in our business and shareholder remuneration. The outlook for 2012 remains unchanged following this transaction.
The transaction remains subject to clearance by the German Federal Ministry of Economics and Technology.
"We are very pleased with this transaction. It is in accordance with our strategy, as we do not consider the ownership and development of mobile towers to be a core part of our operations. It is also at an attractive valuation. This transaction in Germany follows the sales of a large part of our mobile towers in The Netherlands between 2008 and 2012. American Tower Corporation has a strong operational track record and we look forward to a successful partnership which will support E-Plus' network stability and business prospects."
(Eric Hageman, CFO KPN)
Located throughout Germany, the mobile towers are used by both E-Plus and other mobile network operators to house network equipment. As part of this transaction, E-Plus and American Tower Corporation have entered into a long-term master lease agreement under which E-Plus leases back space on the mobile towers which it requires for its own network equipment. Currently, E-Plus already leases space on a large number of mobile towers in Germany.