Royal KPN N.V. and Royal Volker Wessels Stevin nv have reached agreement on the acquisition of a majority interest (55%) by Volker Wessels Stevin in KPN Netwerk Bouw, whose activities will be pursued under the name Volker Wessels Netwerk Bouw. A full take-over by Volker Wessels Stevin is expected to follow on 1 January 2005. The company employs 1,650 people.
The sale of KPN Netwerk Bouw is in keeping with KPNÂ's strategy of concentrating on its core activities, as previously announced. KPN Netwerk Bouw, with branches in 10 different cities, designs, builds and manages telecommunications structures for the landline network. Its turnover of â‚¬ 566 million last year makes it the market leader in the Netherlands.
The planned acquisition of a majority interest by Volker Wessels Stevin, as previously announced, took longer to conclude than expected, due to the sharp decline in investment in the telecommunications sector. This decline also affected KPN Netwerk Bouw and forced it to undertake a fundamental rationalisation process. Prior to the acquisition of the interest by Volker Wessels Stevin, KPN Netwerk Bouw reduced its workforce to a level corresponding to the current market situation in 2002.
The acquisition of a majority interest in KPN Netwerk Bouw is a logical step in view of Volker Wessels StevinÂ's aim to expand its activities in the area of telecommunications infrastructure services.
The acquisition of a majority holding in this company, with operating revenues expected to amount to â‚¬ 320 million in 2002, is also in keeping with its strategy of expansion into engineering and maintenance.
(source: Koninklijke Volker Wessels Stevin)