Telenet targets Belgium market with €1.3bn offer for KPN’s Base
TELENET group has entered into a definitive agreement to acquire mobile operator Base group for €1.3bn (£937m).
Telenet, which itself is a subsidiary of telecommunications firm Liberty global, will be purchasing the Base group, which primarily focuses on Flemish speaking Belgium, from rival KPN.
The company expects the acquisition to create a leading integrated communications provider in Belgium with combined 2014 adjusted revenue of €2.4bn and earnings before interest, tax, depreciation and amortisation of €1.1bn.
In addition, Telenet expects to make annual savings of €150m through reducing capital expenditure particularly by transferring Telenet’s mobile subscribers to the Base network.
Telenet said it will finance the acquisition through a combination of €1bn of new debt facilities and existing liquidity.
Investors welcomed the news, with shares in Telenet group closing up 5.66 per cent.