BRUSSELS, Belgium-KPN Mobile will acquire 50 percent of Belgium operator KPN Orange Belgium from France Telecom for $443.5 million, giving KPN 100-percent ownership.
France Telecom had to divest its KPN Orange ownership, which it acquired through its acquisition of Orange plc earlier this year, to fulfill European Commission directives. France Telecom also owns 51 percent of Belgium’s second-largest operator Mobistar and could not hold stakes in two Belgian carriers.
KPN Mobile will retain the right to use the Orange brand in Belgium until Oct. 1, 2002.
Completion of the transaction, which includes $353.5 million for 50 percent of the equity and a $90 million shareholder loan, is subject to Belgian merger control authorities and European Commission consent.
“With the acquisition of a 100-percent stake in KPN Orange Belgium, we are establishing our strategy of gaining strategic and operational control in our ventures in the key countries: Germany, the Netherlands and Belgium,” said KPN Mobile Chief Executive Officer Diederik Karsten. “This strengthens the position of KPN Mobile in the competitive landscape and is creating potential synergies for the KPN Mobile Group, such as joint procurement and joint network rollout for the 3G network.”
