Dutch telecoms giant KPN has agreed to acquire the remaining 40% share in open fibre broadband operator Reggefiber, thus gaining 100% ownership, for EUR610 million (USD762.8 million), according to a press release. The news follows KPN’s purchase of an additional 9% stake in the company from its founding shareholder Reggeborgh at the end of October 2014, then increasing the telecom provider’s equity share to 60%. The new purchase agreement will use some of the earnings from the Dutch company’s USD11.9 billion sale of its German unit, E-Plus, in line with its strategy to ‘increase financial flexibility’. KPN is also to repay Reggefiber’s external debt in 4Q14, amounting to around EUR500 million.
KPN management board member, Joost Farwerck, commented: ‘We…aim to learn and make use of the vast amount of expertise which is present within Reggefiber…the efficient way of building and operating a passive infrastructure, the local operational approach and the fibre-to-the-home (FTTH) knowledge centre will be of great value to KPN’s operations. KPN will continue to focus on executing its hybrid upgraded copper / FTTH strategy in The Netherlands to provide high quality broadband services to our customers.’