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KPN secures approval to take control of Reggefiber

KPNDutch telco KPN has secured approval from the country’s Autoriteit Consument & Markt (ACM) regulatory body to acquire a further 9% stake in fibre-to-the-home operator Reggefiber from joint venture partner Reggeborgh for €161 million.

The move will take KPN’s stake in Reggefiber to 60%, giving it full control and enabling it to consolidate the Reggefiber operation in its financial statements from November 1. The deal is expected to close on November 3.

Reggeborgh has an option to sell its remaining 40% holding in Reggefiber to KPN, before July 2 2017 for a guaranteed price of €647 million or by January 1 2021 for a fair market value.

“We are pleased that ACM has approved the increase of our shareholding in Reggefiber. The consolidation of Reggefiber fits perfectly in KPN’s hybrid upgraded copper/FttH strategy and marks another important step to strengthen KPN’s commitment to FttH in The Netherlands,” said Joost Farwaeck, member of the management board of KPN.

“This, together with the operational synergies, will provide further support for the execution of our strategy in The Netherlands. Finally, I would like to reiterate that KPN will continue its open access strategy.”