Jon3G
28th June 2005, 12:12 PM
By Jan Libbenga
Published Tuesday 28th June 2005 10:06 GMT
KPN is boosting its Dutch mobile business with the acquisition of Telfort for around 980m on a debt and cash-free basis. This means that the current owners will get $80m and whatever cash is slurping around Telfort's sales ledger and bank accounts - the company has debts of 900m. KPN could pay up to 140m more for the business, if performance targets are met.
Telfort used to be 02 Netherlands and was sold off a couple of years ago to Greenfield and Enertel for 25m. Last year, Dutch investor Marcel Boekhoorn acquired a controlling interest in Telfort through his company Ramphastos.
By acquiring Telfort KPN hopes to reach higher-growth customer segments and take its revenue share in its home Dutch market to more than 40 per cent.
Telfort will remain a separate company under KPN. It has 2.4m mobile subscribers and has a strong position in cost-conscious consumer segments. It is also the first operator in the Netherlands with national broadband network coverage - it uses EDGE technology. In 2004/20005 Telfort's net sales were 509m (2003/2004 422m) and EBITDA of 97m (2003/2004 67m).
KPN serves 7.4 million fixed-line subscribers and 1.7 million Internet users in the Netherlands as well as 17.7 million mobile customers in Germany, the Netherlands and Belgium.
The acquisition is subject to regulatory approval. ®
Published Tuesday 28th June 2005 10:06 GMT
KPN is boosting its Dutch mobile business with the acquisition of Telfort for around 980m on a debt and cash-free basis. This means that the current owners will get $80m and whatever cash is slurping around Telfort's sales ledger and bank accounts - the company has debts of 900m. KPN could pay up to 140m more for the business, if performance targets are met.
Telfort used to be 02 Netherlands and was sold off a couple of years ago to Greenfield and Enertel for 25m. Last year, Dutch investor Marcel Boekhoorn acquired a controlling interest in Telfort through his company Ramphastos.
By acquiring Telfort KPN hopes to reach higher-growth customer segments and take its revenue share in its home Dutch market to more than 40 per cent.
Telfort will remain a separate company under KPN. It has 2.4m mobile subscribers and has a strong position in cost-conscious consumer segments. It is also the first operator in the Netherlands with national broadband network coverage - it uses EDGE technology. In 2004/20005 Telfort's net sales were 509m (2003/2004 422m) and EBITDA of 97m (2003/2004 67m).
KPN serves 7.4 million fixed-line subscribers and 1.7 million Internet users in the Netherlands as well as 17.7 million mobile customers in Germany, the Netherlands and Belgium.
The acquisition is subject to regulatory approval. ®