The sale of E-Plus to Telefonica is on track, despite the collapse of a proposed takeover of E-Plus parent KPN last week.
KPN’s shareholders approved the sale of its German subsidiary to Telefonica Deutschland during an EGM, and the telcos will now work together to achieve regulatory clearance for the deal. The agreement to sell E-Plus means majority KPN shareholder América Móvil did not renege on a promise to back the transaction, despite the collapse of its proposed takeover of KPN last week.
The sale can’t come soon enough for the Dutch telco, which yesterday reported a 56% year-on-year fall in net profit for the third quarter, and a 31% drop in profit for the nine months to end-September.
“As expected, market conditions remained challenging in the third quarter,” chief executive, Eelco Blok, notes adding “We are on track with our continuing operations towards our outlook, and KPN Group will have a strong financial profile after the sale of E-Plus.”
KPN predicts its domestic performance will begin to stabilize around the year-end, and that its Belgian operation will outperform the market in the final quarter. The telco aims to recommence dividend payments in 2014, after completing the sale of E-Plus.