UPDATE 1-KPN to sell infrastructure unit
(Adds details, background)
* Sale aimed at reducing group's debt
* Financial details of sale not disclosed
* Unit had revenues above 100 mln euros in 2012
BRUSSELS, March 19 (Reuters) - Dutch telecoms group KPN will sell its infrastructure unit IS&P to Dutch engineering company SPIE Nederland, the company said on Tuesday, the latest in a string of divestments aimed at reducing debt.
The group, which did not disclose financial details of the transaction, said that IS&P employs 600 people and had revenues of more than 100 million euros ($129.6 million) in 2012.
KPN's net debt to EBITDA (core profit) ratio, which it aims to keep between 2.0 and 2.5, stood at 3.0 at the end of the fourth quarter.
In late 2012 KPN sold its mobile tower infrastructure in Germany and the Netherlands and will rent access from the new owners.
KPN, which also plans a 3 billion euro rights issue to bring down its debt, has already cut its dividend for 2013 after it had to spend an above-forecast 1.35 billion euros in a mobile frequency auction in the Netherlands in December.
The group is currently ranked one notch above the lowest investment-grade rating by Moody's and Standard & Poor's, which both have a negative outlook on KPN's debt. ($1 = 0.7717 euros) (Reporting by Robert-Jan Bartunek; Editing by David Goodman)
- Seven NATO allies to create new rapid reaction force-report
- Ukraine seeks to join NATO; defiant Putin compares Kiev to Nazis |
- U.S. authorities investigate suspected threat against Obama: reports
- California passes plastic bag ban, would be first such law in U.S.
- Putin says Russia must strengthen its economic, military position in Arctic