Telefónica wins backing for KPN German subsidiary takeover

Telefónica has improved its offer for Netherlands-based KPN’s German mobile operator E-Plus, winning the approval of KPN’s biggest shareholder America Movil.

As part of the improved terms, KPN will receive €5.0 billion in cash and a 20.5% stake in Telefónica Deutschland post transaction, for a total transaction value of €8.55 billion. This compares to the previously announced value of €8.10 billion.

In a statement, America Movil said it had agreed with Telefónica to vote in favour of the E-Plus transaction at the improved terms. However, the deal is still subject to regulatory clearance.

The renegotiated agreement comes just weeks after America Movil announced plans to make a €7.2 billion bid for all issued and outstanding shares in KPN. Currently it owns 29.77% of the Dutch operator.