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KPN plans tender offer for remaining public minority stake in iBasis
By Susanna Moon
Chicago, July 13 - Royal KPN NV said it plans to launch, through its wholly owned subsidiary KPN BV, a cash tender offer for all outstanding common shares of iBasis, Inc. not already owned by KPN and its subsidiaries.
KPN has a 56% stake in iBasis.
KPN plans to offer the public minority shareholders of iBasis $1.55 per share in cash, valuing the stake of about 44% not owned by KPN at $48.2 million. The offer price represents a premium of 19.2% over the company's closing price of $1.30 (Nasdaq: IBAS) on July 10 and 33.6% over the average closing price during the past three months.
"Given the current challenging economic and competitive environment faced by iBasis, KPN believes that private ownership will assist iBasis in reaching its operational and strategic objectives," KPN said in a press release.
KPN said it has no interest in selling its controlling interest in the company or in any other strategic transaction.
The offer will be made directly to iBasis shareholders.
KPN will begin the offer by the end of July. The offer will be conditioned upon the tender of a majority of the minority shares, or shares not owned by KPN or its affiliates or the directors or officers of KPN or iBasis, and the ownership by KPN of at least 90% of the outstanding shares after completion of the offer.
The offer is not subject to any financing condition. Funding for the offer will come from existing financing sources.
If KPN acquires at least 90% of outstanding shares, it will then complete the acquisition via a short-form merger.
KPN is a telecommunications company based in Amsterdam.
iBasis is a voice carrier and wholesale provider of voice, mobile data and prepaid calling products and services. It is based in Burlington, Mass.
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