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Oil and Gas

Snubbed by KPN, EQT's Delta plans $2.4 bln Dutch fibre optic network

AMSTERDAM, Aug 2 (Reuters) - Dutch telecommunications firm Delta, owned by Swedish private equity investor EQT, said on Monday it planned to spend 2 billion euros ($2.37 billion) over the next three years to build out its fibre optic network in the Netherlands, as it aims to compete with national telecoms company KPN NV..

In May, KPN rejected a possible takeover bid by a private equity consortium comprising of EQT and U.S. investment firm KKR .

Delta said in a statement on Monday it expected its fibre customer strength of 1 million fibre at the end of 2020 to 2 million by 2025, after having received 1.45 billion euros ($1.72 billion) in financing from major Dutch banks ABN Amro and ING, as well as Santander and Deutsche Bank.

“We want to provide fibre optic connections to 2 million homes and companies, primarily in the smaller towns and cities in the Netherlands,” said Chief Executive Officer Marco Visser.

KPN, the country’s largest telecoms firm, said in November last year that it planned to spend 3.5 billion euros to increase its fibre optic rollout in the Netherlands through 2024. In March, it said pension fund ABP would assist with funding the rollout.

The country’s third-biggest mobile provider, T-Mobile Netherlands, reached a 700 million euro fibre deal with private equity firm KKR in April. ($1 = 0.8424 euros) (Reporting by Toby Sterling; Editing by Rashmi Aich)

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