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KPN to sell BASE Company to Telenet for $1.43 billion

Staff writer |
Royal KPN N.V. has reached an agreement to sell BASE Company to Telenet for a cash consideration of EUR 1,325 million.

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Together with Telenet, BASE Company will now be able to offer fixed and mobile services in Belgium. Following this valuable transaction, KPN will fully focus on its successful integrated access strategy in The Netherlands.

The cash consideration of EUR 1,325 million implies an attractive valuation for BASE Company of 8.9x times full-year 2014 EBITDA. In addition, KPN retains a majority interest in any net proceeds of the claim against Belgacom, which BASE Company will continue to pursue.

The Supervisory Board and the Board of Management of KPN, taking into account the interests of shareholders and other stakeholders, have approved the transaction. The sale of BASE Company is subject to merger clearance.

In addition, the transaction is subject to other customary terms and conditions including a break-up fee of EUR 100 million payable by Telenet in case the merger control authorities do not approve the transaction.

KPN intends to use the proceeds of the sale to create maximum value for shareholders. A further announcement on the use of proceeds will be made on completion of the transaction.

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