America Movil secures KPN takeover funding

Latin American operator group America Movil announced that it has secured the funding needed to finance its takeover of European operator KPN.

Earlier this month, America Movil voiced its intention to acquire all outstanding shares in the Dutch operator group. The Mexican firm already owns a 29.8 per cent stake in KPN but is looking to own it outright, or at least secure a majority share, as it steps up its efforts to expand further into Europe.

“América Móvil has entered into binding credit facilities subject to customary conditions with reputable global financial institutions regarding the full financing of the Intended Offer,” the firm said in a statement.

It will submit an offer memorandum to the Netherlands Authority for the Financial Markets (AFM) for approval in September.

The operator, owned by billionaire Carlos Slim, said its offer implies a premium of approximately 35.4 per cent over the average closing price of KPN’s ordinary shares for the previous 30 trading days. At the time of announcing the offer, America Movil also voiced hopes to acquire KPN’s German subsidiary, E-Plus, despite Telefónica’s July proposal to acquire the unit.

America Movil’s offer will be subject to conditions, including a minimum acceptance condition that América Móvil will hold more than 50 per cent of the voting rights exercisable in a general meeting of shareholders of KPN.

KPN’s Board of Management and Supervisory Board have said they would carefully consider América Móvil’s intended offer.