Dutch operator KPN is beginning a brand new three way partnership with the Dutch pension fund ABP. Each events have signed an settlement to create a brand new tower firm (TowerCo), bringing collectively their passive cell infrastructure belongings. This partnership is in step with KPN’s ‘Join, Activate, and Develop’ technique to optimise the worth of its passive infrastructure belongings and retain strategic flexibility, KPN mentioned on Wednesday.
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TowerCo’s Portfolio
TowerCo is ready to handle a portfolio of roughly 3,800 towers and rooftops throughout the Netherlands. These belongings embrace these of NOVEC and OTC, portfolio firms owned by TenneT and ABP respectively. KPN has additionally dedicated to a built-to-suit association for the following 10 years.
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KPN’s Dedication and Tenancy Plans
TowerCo and KPN have entered right into a long-term grasp service settlement, underneath which KPN will proceed to be a tenant of TowerCo for an preliminary interval of 20 years. TowerCo goals to additional enhance tenancy ranges of its community by offering entry to completely modernised towers and rooftops, the official launch mentioned.
KPN mentioned this transaction permits it to make sure that its cell community continues to fulfill the efficiency requirements required to ship high-quality companies to subscribers, to accommodate new applied sciences, similar to 5G, and to increase protection into underserved areas. As a part of the transaction, a few of the current lease phrases have been reset.
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KPN’s Majority Stake in TowerCo
Underneath the phrases of the settlement, KPN will maintain a majority stake of 51 p.c in TowerCo, with ABP holding the remaining 49 p.c. The transaction additionally includes KPN buying TenneT’s stake in NOVEC. KPN has agreed to an upfront money cost of EUR 120 million to NOVEC/OTC’s present shareholders for the stake within the firm, topic to closing changes.
