THE HAGUE (dpa-AFX) - KPN and Dutch pension fund ABP have signed an agreement to create a new tower company or TowerCo.
TowerCo will hold the passive mobile infrastructure assets of KPN, as well as those of NOVEC and OTC (portfolio companies owned by TenneT and ABP respectively), leading to a portfolio of about 3,800 towers and rooftops in the Netherlands and also has received a built-to-suit commitment for the next 10 years from KPN.
TowerCo and KPN have entered into a long-term master service agreement, stipulating the terms under which KPN will continue to be a tenant of TowerCo for an initial period of 20 years.
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 about 120 million euros to NOVEC/OTC's current shareholders for the stake in the company and the amended lease terms.
The transaction has no impact on employment and is subject to approval by the works council and regulator.
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