Royal KPN NV is in the process of conducting a Eur3 billion or US$3.9 billion share sale in order to provide financing for its phone networks. The terms of the sale was discounted to 62% from the share's closing price at market's end yesterday.
In the offer, KPN is making available 2.84 billion shares priced at Eur1.06 each. In yesterday's closing value in the Amsterdam bourse, the shares cost was pegged at Eur2.78 per. In the last two months, the share values had declined by 7.1%.
American Movil, in related news, had agreed to purchase shares proportional to its share in the Dutch carrier.
The company is in the process of strengthening its bottom line after its purchase of wireless spectrum costing Eur1.35 billion. This move is aimed to address consumer demand seeking faster mobile network services as more and more smartphones are used in surfing the Web, downloading music and viewing videos. It had also announced that dividends planned to be paid out in 2013 and 2014 had been scrapped to put the funds into more capital expenditures.
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