KPN merging its international wholesale voice business with VoIP carrier iBasis
Source: voipcentral.org
KPN, Telecom wholesaler announced that they are going to merge there international wholesale voice business with international VoIP carrier iBasis to form another unit named iBasis. Nasdaq listed iBasis as leading group for long-distance telephone calls and provider of pre-paid calling cards.
KPN will contribute 100 percent to iBasis. They will make cash payment of $55; in return, iBasis will issue new shares to KPN. The 51% shares are diluted shares. iBasis will also pay a $113 million to its pre-closing shareholders.
iBasis is taking 51% ownership to fully consolidate the international wholesale activities. KPN wants to grow its fixed division, so KPN will maintain this deal.
The deal is expected to close by the end of year 2006.
Via: ovum
