KPN Raises $3.78 Billion in Share Sale After 97.4% Take-Up

Royal KPN NV (KPN), the Dutch phone operator partly owned by Carlos Slim’s America Movil SAB, raised about 2.92 billion euros ($3.78 billion) in a share sale as investors took up 97.4 percent of the offered rights.

The 74.9 million shares that have not been subscribed will be offered for sale today, The Hague-based KPN said in a statement. KPN set out to raise 3 billion euros by offering 2.84 billion shares at 1.06 euros each.

The phone operator needs to strengthen its balance sheet after spending 1.35 billion euros on wireless spectrum to increase network speed for customers using smartphones for surfing the Web, downloading music and watching videos. KPN also scrapped dividends planned for 2013 and 2014.

KPN shares rose 6.2 percent to 1.72 euros in Amsterdam yesterday, the biggest increase since Nov. 21. That pared their decline this year to 23 percent.

Investors were entitled to buy two offered shares for each share right they held, KPN said on April 25. The rights offer started April 26 and ended yesterday.

The share sale was fully underwritten by a syndicate of banks led by Deutsche Bank AG, Goldman Sachs Group Inc. and JPMorgan Chase & Co. ABN AMRO Group NV, ING Groep NV and Rabobank Groep were book runners and BNP Paribas SA, Credit Suisse Group AG, Societe Generale SA and UniCredit SpA acted as lead managers.

To contact the reporters on this story: Maud van Gaal in Amsterdam at mvangaal@bloomberg.net; Ruth David in London at rdavid9@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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