America Movil offers €3.2bn for Dutch telco
THE WORLD’S richest man has set his sights on Europe by offering to buy about a quarter of Dutch telecoms group KPN, sending its shares soaring.
America Movil, the Fortune 500 telecoms giant owned by Mexican tycoon Carlos Slim, yesterday announced its intention to increase its holding in KPN from 4.8 per cent to 28 per cent.
The Mexican group offered €3.2bn (£2.58bn) in cash for the Dutch stake, or €8 per share – a premium of 23.5 per cent over Monday’s closing price.
America Movil, which provides wireless services primarily in Latin America and the Caribbean, said it “has been evaluating expanding its operations to other regions outside the Americas” having exhausted growth opportunities in its current operating regions.
It added that KPN, “which has an attractive position in important European markets”, represents its first significant investment in Europe.
America Movil’s finance director Carlos Garcia Moreno said it was too early to say whether the firm would do any other deals in Europe.
KPN said it has noticed America Movil’s intentions and will make further announcements in due course.
The offer is now awaiting approval from the AFM, the Netherlands’ financial markets watchdog, and could be realised by June.
Carlos Slim, ranked by Forbes as the world’s wealthiest man, has made a habit of buying struggling companies and turning them around.
Before the offer was announced, KPN’s shares had fallen 39 per cent in the last year. Its former chief financial officer quit in January due to disagreements over internal governance.
KPN shares jumped 17 per cent to €7.58 yesterday. America Movil stock, meanwhile, fell 7.8 per cent.