The 3,800 site business will combine passive telecom infrastructure assets owned by KPN with the tower and rooftop assets of Open Tower Company (OTC), which was majority owned by ABP.
Infrastructure belonging to NOVEC, a subsidiary of the national electricity transmission system operator of the Netherlands, will also be sold to the new towerco.
TowerCo has received a build-to-suit commitment for the next 10 years from KPN and the two parties have entered a long-term master service agreement, which stipulates the terms under which KPN will continue to be a tenant of TowerCo for an initial period of 20 years.
TowerCo will aim to further increase tenancy levels on its network by providing access to the assets to other MNOs and connectivity providers in the Netherlands. It described the assets it has pooled as “attractive and fully modernised towers and rooftops”.
Through the transaction, KPN said it gains higher flexibility over a substantial part of its mobile sites, enabling strategic synergies regarding the deployment, maintenance, and optimisation of its network infrastructure.
This flexibility allows KPN to ensure that its mobile network continues to meet the performance standards required to deliver high-quality services to subscribers, to accommodate new technologies, such as 5G, and to expand coverage into underserved areas.
It also allows for the harmonisation of contracts. KPN revealed that following the transaction to establish TowerCo some of its existing lease terms have been reset and a “futureproof agreement” has been arranged, covering approximately 60% of its tower and rooftop portfolio.
KPN will hold a 51% consolidating stake in TowerCo and ABP the remaining 49%, with TenneT selling its stake in NOVEC as part of this transaction.
KPN has agreed an upfront cash payment of ~€ 120m to NOVEC/OTC’s current shareholders for the stake in the company and the amended lease terms, subject to closing adjustments.
For more information on this deal visit TowerXchange, another techoraco brand.
