Deutsche Telekom is apparently considering selling its Dutch subsidiary

According to a report, Deutsche Telekom is considering that T-Mobile business for sale in the Netherlands. There was already speculation about the future of the subsidiary.

According to a newspaper report, Deutsche Telekom is examining the sale of its Dutch T-Mobile-Business. The Bonn group aims to sell the subsidiary for four to five billion euros to investors from the private equity sector, as the Dutch newspaper “Het Financieele Dagblad (FD)” reported on Monday with reference to Insider. “We do not comment on speculation,” said a telecom spokesman on request. In early trading on Monday, the Telekom share barely moved.

Among the interested parties are financial investors such as Apollo, Cinven, Warburg Pincus and Apex, it said in the newspaper report. Given the size of the deal, a partnership between two investors is also possible.

At Telekom, the business in the Netherlands belongs to the so-called development division in the group. This bundles the Bonn business units that either need special attention or that are potential candidates for a sale or an IPO. For a long time, business in the Netherlands was sluggish for Telekom until the subsidiary, based on the US model, with more aggressive tariffs and more advertising, should be trimmed for growth.

Rumors of an IPO have been around for a long time

According to their own statements, counts T-Mobile NL as of December 2020 around 6.7 million mobile phone customers. Were in mid-December 2017 T-Mobile NL and Tele2 merged, the majority owner remains under T-Mobile NL operating company is Deutsche Telekom with three quarters of the shares. Tele2 holds the remaining 25 percent.

In the past there have been several speculations that Deutsche Telekom wants to reposition itself in the Netherlands. At that time there was a possible IPO or sale of the Dutch T-Mobile business the speech. In 2018, the then CFO Thomas Dannenfeldt described the Netherlands as a “very difficult market”.

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