America Movil completes share offer for Royal KPN

Mexican telecommunications group America Movil SAB de CV (NYSE:AMX) announced the completion of its EUR8.00 (USD10.06) per share partial offer for Royal KPN NV (AMS:KPN) saying it had bought the targeted 27.7% stake in the Dutch telecommunications and ICT services provider.

On 27 June when the EUR2.6bn partial offer expired, AMX said that 562.5m KPN shares, or 39.66%, had been tendered to its bid since its launch on 30 May.

As by the deadline, the Mexican group had already piled up a 24.91% KPN interest through deals outside the offer, AMX said it would accept only a 2.82% stake tendered under the offer, representing around 7.11% of the tendered stock.

The partial offer succeeded despite the opposition by KPN management and supervisory boards which deemed it opportunistic and undervaluing the company’s potential.

In its current statement, AMX said that via this investment it had reached its goal to secure a meaningful minority stake in KPN which has a good position in significant European markets.

The Mexican group will settle on 3 July the payments for the KPN stock tender under the bid, it said.

AMX, which held 4.8% in KPN before launching the partial offer, sees this deal as an opportunity to expand outside the Americas as it sees geographic diversification to be key to its growth. This is its largest investment in Europe so far, the buyer has said, adding it would use own cash resources to finance it.

KPN had 44.5m subscribers at the end of 2011.

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