KPN announced on Tuesday it has further reduced its stake in Telefonica Deutschland, raising €805 million.
The Dutch incumbent offloaded 150 million shares to institutional investors at a price of €5.37 per share. The transaction reduces the telco’s stake in Telefonica Deutschland to 15.5% from 20.5%.
"KPN intends to distribute approximately 70% of the proceeds of the transaction to its shareholders in 2016 as a dividend in the form of a capital repayment," KPN said in a statement.
The remaining 30% will be used to further strengthen the company’s financial position.
KPN acquired a 20.5% stake in Telefonica Deutschland as part of the sale of its German mobile unit E-Plus, which was completed in October 2014.
As part of that deal, KPN agreed to a six-month lock-up period for the stake. However, less than a month after the sale closed, KPN CEO Eelco Blok indicated that he was considering offloading it.
KPN said it expects to complete Tuesday’s share sell-off on Thursday. The telco has agreed to a 90-day lock-up period for its remaining 15.5% stake in Telefonica Deutschland, after which it will be free to sell more shares.
