Dutch telecoms group KPN said that its subsidiary KPN Mobile International has entered into an agreement with Mobistar for the sale of its fixed Belgian B2B and Carrier business, including its fiber network, for an amount of €65m on a cash and debt-free basis.
The company said that the business being sold is expected to generate pro forma revenues of approximately €50m and EBITDA of approximately €10m in 2009.
KPN said that, with this transaction, it has decided not to invest further in the Belgian B2B market, given the generally unfavourable competitive environment. Getronics Belgium remains committed to the Belgian market. The sale to Mobistar will allow KPN Group Belgium to focus on mobile and fixed services in the consumer and SoHo/SME market segments.
In addition, the company said that it has established wholesale partnership with Mobistar to provide KPN Group Belgium with fixed products like VoIP and broadband.
Benoit Scheen, CEO of Mobistar, said: “This purchase is in line with our convergence strategy and will enable Mobistar to reinforce its position as a provider of fixed telephony and fix data to the B2B segment. Thanks to the outstanding know-how and infrastructure of KPN Belgium Business, Mobistar will be able to improve the time to market for the development and the marketing of new b2b products.”
The transaction is expected to close in the first quarter of 2010. The works councils, labour unions and relevant governmental bodies have been informed of the intended transaction.