Te­lenet buys Bel­gium mo­bile op­er­a­tor BASE for US$1.43 bil.

The China Post - - MARKETS -

Dutch tele­com group KPN said Mon­day it was sell­ing its Bel­gian cell­phone op­er­a­tor BASE to ca­ble group Te­lenet for 1.325 bil­lion eu­ros (NT$44.20 bil­lion; US$1.43 bil­lion).

The deal — which will have to be ap­proved by reg­u­la­tors — will al­low Te­lenet, owned by U.S. gi­ant Lib­erty Global, to re­in­force its fixed line and In­ter­net ser­vices in Bel­gium, and take own­er­ship of BASE’s mo­bile net­work.

BASE is the third big­gest cell­phone op­er­a­tor in Bel­gium with 3.3 mil­lion sub­scribers and 2014 turnover of 690 mil­lion eu­ros in 2014, be­hind ri­vals Prox­imus and Mo­bis­tar — whose mo­bile net­work Te­lenet cur­rently re­lies on for mo­bile ac­cess.

Te­lenet chair­man John Porter said, “Through the ac­qui­si­tion of BASE we have made a sig­nif­i­cant step to se­cure long-term mo­bile ac­cess con­di­tions, en­sur­ing we are well po­si­tioned to ef­fec­tively com­pete for the fu­ture growth op­por­tu­nity of mo­bile data.”

The merg­ing com­pa­nies posted com­bined ad­justed rev­enues of 2.4 bil­lion eu­ros, and are ex­pected to gen­er­ate 150 mil­lion eu­ros in new syn­er­gies — no­tably by mi­grat­ing Te­lenet cell­phone cus­tomers to the BASE net­work.

Te­lenet said it will in­vest 240 mil­lion eu­ros in com­ing years, some of which will go to­wards fa­cil­i­tat­ing BASE’s in­te­gra­tion and to fur­ther de­velop its mo­bile in­fra­struc­ture.

That fund­ing will come atop 500 mil­lion eu­ros in in­vest­ment funds pre­vi­ously set aside to up­grade Te­lenet’s hy­brid fi­bre/coax net­work to boost client con­nec­tion speed.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.