A joint venture company has been established between Royal KPN N.V and pension fund manager APG Group for the purpose of speeding up the process of rollout of fibre across the Netherlands. The deal is now subject to regulatory approval and the joint venture company hopes to start operations in the second quarter of the year.
Pensions company, APG will own around 50% of the JV company having invested around 440 million euros which will be split into an initial payment of 220 million euros and the remaining 220 million euros to paid in yearly instalments, depending on the progress of the rollout. Total equity value of the joint venture will be 880 million euros.
The deal will aid KPN’s strategy as the leading fibre operator in the Netherlands with the intention of achieving 80% FTTH coverage by 2026 meaning that fibre reaches about 685,000 households in medium-dense areas and 225,000 businesses.
Joost Farwerck, CEO of KPN: "This strategic partnership with APG marks a next step in the acceleration of our fiber rollout in the Netherlands and shows we can act quickly on opportunities in the Dutch market. It is an attractive transaction, creating additional value for all stakeholders. Through this JV we further accelerate the fiber rollout and bring forward the long tail in smaller villages and business parks. It ensures almost nationwide fiber coverage by 2026. Together with 5G, our state-of-the-art fiber network creates the most modern and powerful network, supporting the Netherlands well into the 21st century."