KPN Sells German Mobile Towers to American Tower Corporation
The agreement has been made for a cash consideration of €393m (£316.8), resulting in an expected book gain of around €100m (£80.6m) for the company.
KPN says it will use the proceeds of the deal to continue to invest in its mobile network roll-out in Germany and to improve its net debt position. This transaction follows the sales of a large number of KPN’s mobile towers in The Netherlands between 2008 and 2012.
The towers are used by E-Plus and other network operators to house network equipment. E-Plus and American Tower Corporation have now entered into a long-term lease agreement. E-Plus already leases space on a large number of mobile towers in Germany.
The deal remains subject to clearance by the German Federal Ministry of Economics and Technology.
“We are very pleased with this transaction. It is in accordance with our strategy, as we do not consider the ownership and development of mobile towers to be a core part of our operations. It is also at an attractive valuation,” said Eric Hageman, CFO at KPN.
“American Tower Corporation has a strong operational track record and we look forward to a successful partnership which will support E-Plus’ network stability and business prospects.”