Telenet buys Belgium’s BASE Company for €1.3 billion

BASE CompanyLiberty Global-backed Belgian cable operator Telenet has agreed to buy domestic mobile operator BASE Company for €1.325 billion from Dutch telco KPN.

Telenet said that the definitive agreement will provide it with long-term mobile access to “effectively compete for future growth opportunities in the mobile market.”

It said the acquisition will allow to meet rising demand from residential and business customers for the full range of fixed and mobile services.

“We are very pleased with this important strategic and complementary acquisition and the benefits that it will deliver to all stakeholders, including an enhanced customer experience for both our and BASE Company’s mobile subscribers, resulting in an improved long-term growth profile for the combined company,” said Telenet CEO, John Porter.

“Through the acquisition of BASE Company 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.”

Telenet launched its ‘King’ and ‘Kong’ mobile offers in the Belgian market in 2012 and more recently launched ‘Family Deal’ packages, offering a monthly discount on multiple SIMs in the home for existing and new triple-play subscribers.

Telenet said that the combination of Telenet and BASE Company will create a “leading integrated communications provider” in the Belgian market, with a combined 2014 adjusted revenue of €2.4 billion and Adjusted EBITDA of €1.1 billion.

Telenet said that with the deal, it will make expenditures of around €240 million, including targeted investments in BASE Company’s mobile network and integration costs, most of which will occur over the next few years.

“This considerable investment will complement the earlier announced €500 million investment in Telenet’s HFC network as part of the ‘De Grote Netwerf’ program, providing a strong impetus to the Belgian digital economy,” said the firm.

The deal is subject to the approval from the relevant competition authorities.