Lat Am giant looks to Netherlands to boost European footprint

Details: James Barton; Category: Investment; 15 May 2012; 9126 views

A major telecom player in Latin America is looking to increase its presence in Europe...

A major telecom player in Latin America is looking to increase its presence in Europe. America Movil has announced its intention of acquiring a larger stake in Dutch operator KPN. The Latin America group already owns 4.8% of the Dutch firm, and could buy as much as 28% of it.

The potential acquisition would be the most significant step into Europe that America Movil has taken so far. With an offer of €8 per share – 23% higher than currently listed – the deal would be worth over US$3 billion.

According to financial regulations in the Netherlands, any company acquiring 30% (or higher) of voting rights in another must then provide a formal bid for the remaining shares. This may have affected America Movil’s decision to bid for 28% of the voting rights.

The deal is expected to be completed by early June. America Movil is reportedly keen to increase its experience in the European market, and this transaction would allow it to do so indirectly. Although KPN has recently seen its profits drop, America Movil’s offer has seen the Dutch operators share prices leap up by around 22%.