KPN Sells German Phone Towers to American Tower for $501 Million
Royal KPN NV (KPN), the Dutch phone company partly owned by Mexican billionaire Carlos Slim, agreed to sell part of its German mobile-phone towers to American Tower Corp. (AMT) for 393 million euros ($501 million) in cash.
KPN will probably book a 100 million-euro gain on the sale, The Hague-based company said in a statement today, adding its outlook for 2012 remains unchanged following the transaction. KPN earlier forecast full-year earnings before interest, taxes, depreciation, amortization and restructuring costs to be as high as 4.9 billion euros.
The phone company has been selling mobile towers since 2008 and announced an agreement to sell part of its Dutch mobile towers to Protelindo on Oct. 31. KPN said it will use the cash proceeds of the transaction with Boston-based American Tower to continue to invest in the accelerated mobile network roll-out in Germany and to improve its net debt position.
“We are very pleased with this transaction,” which is at an attractive valuation, KPN Chief Financial Officer Eric Hageman said in the statement.
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