Telefonica's E-Plus acquisition back on track
Telefonica Deutschland’s acquisition of KPN subsidiary E-Plus looks to be back on track, after KPN suitor América Móvil agreed to vote in favor of the sale at a forthcoming EGM.
Representatives for the three companies got back round the negotiating table to amend the terms of Telefonica’s planned acquisition of E-Plus, after América Móvil tabled a bid to acquire KPN – a deal analysts said could derail Telefonica’s plan.
América Móvil has laid such doubts to rest by agreeing to vote in favor of the sale at an EGM on October 2, after Telefonica Deutschland agreed to increase the stake KPN will hold in it (post-acquisition) from 17.6% to 20.5%, while still paying the Dutch telco €5 million originally agreed.
KPN will give Telefonica Group the option to buy all or some of the additional 2.9% stake a year after the E-Plus sale is completed.
The acquisition of E-Plus will propel Telefonica Deutschland to the top of the German market in terms of subscriber numbers – 43 million in total -, and is tipped to make the firm more competitive in a market where cellcos revenues and profits are falling.