THE HAGUE, The Netherlands -- KPN announces today that it’s wholly owned subsidiary KPN Mobile International B.V. has entered into an agreement with Versatel Telecom International N.V. and Versatel Nederland B.V., for the acquisition of Tele2 Belgium N.V. and Versatel Belgium N.V. (together “Tele2 Belgium”) for a consideration of Euro 95 million on a debt and cash-free basis.

This acquisition will allow KPN’s mobile subsidiary BASE to further expand its regional distribution reach in Belgium, while driving further revenue growth through cross-selling and up-selling opportunities, which will also include bundled product offers. Tele2’s substantial residential subscriber base in specific regions and its deeply rooted position in the B2B market, will allow BASE to expand and grow its presence in Belgium as a result of this acquisition.

Commenting on the transaction Stan Miller, Member of the Board of KPN and CEO of its International activities said:

"Over the last 5 years, BASE has become the leading challenger mobile company in Belgium and Europe in terms of growth and margin. It has increased its market share from less than 10% to more than 22%. Through this acquisition along with the recently announced purchase of Allo Telecom, I am confident that BASE now has the distribution and sales capability to continue to grow its business in Belgium in a profitable way. I believe that fixed-mobile substitution together with bundled broadband offerings will provide BASE with a competitive advantage. BASE will continue to grow its mobile and broadband offerings through partnerships, which remain a core part of its strategy.”

KPN intends to run Tele2 Belgium independently from BASE. The transaction is subject to approval from the Belgian competition authorities. Lazard acted as financial advisor to KPN on this transaction.

KPN Telecom NV (NYSE: KPN)