America Movil Offers To Buy Remaining Shares Of KPN For EUR2.40 Per Share

(RTTNews) - America Movil S.A.B. De C.V. (AMX, AMOV) Friday said it plans to make a voluntary tender offer of 2.40 euros per share in cash for the remaining shares of Dutch telecom group Koninklijke KPN N.V. (KKPNY.PK, KPN). The deal is estimated to be valued at $9.6 billion.

America Movil, controlled by billionaire Carlos Slim, currently owns 1.27 billion shares in KPN, totaling a 29.8 percent stake in the company.

The offer price implies a premium of 35.4 percent over the average closing price of KPN's ordinary shares on Euronext Amsterdam for the last 30 trading days.

The offer, to be made directly or through a wholly owned subsidiary, will be subject to conditions, including a minimum acceptance condition that following settlement of the offer América Móvil will hold more than 50 percent of the voting rights exercisable in a general meeting of shareholders of KPN.

América Móvil said it has invited KPN´s Supervisory Board and Board of Management to meet as soon as possible to further discuss the offer and potential terms for a long-term constructive relationship. The firm plans to submit an offer memorandum to the Netherlands Authority for the Financial Markets for approval.

The Mexican telecom giant said it has been exploring opportunities to expand its operations to other regions outside the Americas and KPN represented its first such investment.

More than a year after its initial investment in KPN, América Móvil wants to acquire a majority stake in KPN ''to facilitate greater operational co-operation and co-ordination between the two companies, to exploit all areas for potential partnerships and to intensify the realization of synergy potential for both companies.''

In late May, America Móvil launched an offer to acquire shares of KPN for 8 euros per share and boost its stake in that company. That offer expired on June 27 leaving the firm with a stake of 27.7 percent in KPN, up from the previous 24.91 percent of outstanding shares.

KPN had said in late July that it has entered into a transaction to sell 100 percent of its interest in E-Plus to Telefonica Deutschland for 5.0 billion euros in cash and a 17.6 percent stake in Telefonica Deutschland post transaction.

América Móvil said it is carefully evaluating the merits of the proposed transaction. The firm will make a final determination regarding the exercise of its voting rights at the upcoming Extraordinary General Meeting of KPN.

América Móvil said it would continue to maintain its sound financial position, allowing for additional investments in the telecommunication and related sectors in the Americas for the company to maintain its leadership and state-of-the-art technology.

KPN shares are surging close to 19 percent in Amsterdam at 2.38 euros.