KPN launches long-awaited €3bn rights issue
KPN set terms on a €3bn rights issue on Thursday, ending almost three months of speculation, bringing in all the active ECM banks in its credit facility to underwrite. The discount is in line with previous Dutch deals at 35.1%, though — given a hefty share price fall since it first said it would tap shareholders — risk is minimal and the total underwriting fee is low at 1.6%.
Shareholders will be able to buy two new shares for every one held for 1.06 each, a 35.1% discount to the theoretical ex-rights price.
The share price has fallen a lot over the last two months, and closed at 2.78 to on April 24, before the deal was announced.The ...