Regulatory approval for sale E-Plus Royal KPN N.V. ("KPN") has been informed that the European Commission has conditionally approved the acquisition of E-Plus by Telefónica Deutschland, as announced on 23 July 2013 and amended on 26 August 2013. Telefónica Deutschland has signed an agreement with Drillisch, selling 20% of the total network capacity post transaction under a mobile bitstream access model. In addition, Drillisch is entitled to acquire from Telefónica Deutschland up to an additional 10% of the total network capacity. This agreement is a condition precedent for regulatory approval by the European Commission and will be fulfilled when accepted by the European Commission. Completion of the sale of E-Plus is expected in the third quarter of 2014, also following a rights issue by Telefónica Deutschland. Eelco Blok, CEO of KPN KPN will sell and transfer 100% of its interest in E-Plus to Telefónica Deutschland. KPN will receive EUR 5.0 billion in cash and a 20.5% stake in Telefónica Deutschland. The transaction will unlock estimated synergies of more than EUR 5.0 billion, from which KPN will benefit through its 20.5% stake in Telefónica Deutschland. KPN post transaction Last year, KPN reached an agreement with the Dutch tax authorities related to a EUR 3.7 billion tax book loss which is expected to be recognized as a result of the sale of E-Plus. This is expected to offset KPN's taxable income in The Netherlands in the coming years, starting in 2014
|