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KPN further accelerates fiber rollout through JV with APG Strengthening KPN's strategy as leading fiber operator in the Netherlands ~ 80 % FttH coverage by 2026 with JV taking up KPN's long tail , on top of existing fiber rollout plans Further accelerating fiber rollout through JV to ~ 685k households in medium - dense areas and to ~ 225k businesses € 440m cash payment over time by APG for 50 % ownership , crystallizing the value of KPN's state - of - the - art fiber network Rotterdam , 23 March 2021 - Today , Royal KPN N.V. ( KPN ) announces it has signed an agreement with APG to participate in a joint venture to further accelerate the rollout of fiber and lead the digitalization of the Netherlands . Through the joint venture , KPN strengthens its ' Accelerate to grow ' strategy and reaches maximum rollout speed . KPN will continue to pursue its existing fiber rollout plans of ~ 2.5m additional fiber households in the coming five years . On top of this , the new JV will take up the long tail of KPN's fiber rollout plans and will cumulatively roll out ~ 910k additional fiber connections in underserved areas in the coming years . This consists of ~ 685k households in medium - dense areas and ~ 225k businesses . As a result , the FttH network owned by KPN and the JV will jointly cover approximately 80 % of Dutch households by 2026 , with scope to finalize the rollout in the years thereafter . In addition , the JV extensively expands its fiber footprint in business areas . APG has agreed to pay ~ € 440m ( pre - tax ) for a 50 % stake in the joint venture , subject to closing adjustments and split in an initial payment of ~ € 220m and another € 220m to be paid in annual installments based on the rollout progress . The total equity value of € 880m for the JV implies an equity value of ~ € 970 per line . Over the rollout period , Capex of the JV will total approximately € 1.2bn , financed with ~ 70 % debt on a non - recourse basis . The initial payment more than covers KPN's share of expected equity contributions in the JV . Almost all construction capacity as well as Capex financing commitments for the fiber rollout have been secured . The transaction is subject to regulatory approval , with the JV expected to start operations in Q2 2021. The JV will initially be deconsolidated , with KPN having a conditional call option on 1 share . As a result , KPN has the potential to obtain control and reconsolidate in the future . Joost Farwerck , CEO of KPN : " This strategic partnership with APG marks a next step in the acceleration of our fiber rollout in the Netherlands and shows we can act quickly on opportunities in the Dutch market . It is an attractive transaction , creating additional value for all stakeholders . Through this JV we further accelerate the fiber rollout and bring forward the long tail in smaller villages and business parks . It ensures almost nationwide fiber coverage by 2026. Together with 5G , our state - of - the - art fiber network creates the most modern and powerful network , supporting the Netherlands well into the 21st century . " This strategic partnership further strengthens KPN's strategy as the leading fiber company in the Netherlands . Furthermore , it supports KPN's strategy by growing service revenues and strengthening the customer footprint in less densely populated areas . It also enables accelerated savings related to phasing out of services on the copper network . The joint venture will pursue an open wholesale policy , based on voluntary offers and long - term contracts . KPN will be an anchor tenant on the network that is being built , operated , and maintained by the joint venture , but the network will be open for any third - party operator , fostering competition and innovation in the Netherlands . In APG , one of the largest pension investors globally , KPN has found a long - term , reliable , and mutually reinforcing partner with a Dutch heritage . A strong partner in its aim to provide fiber to families and businesses in the Netherlands . This transaction illustrates KPN's ability to access long - term pension fund capital at attractive terms to help further accelerate and increase the rollout of a part of our state - of - the - art fiber network whilst crystalizing significant value for KPN upfront . Conference call at 10h00 CET KPN will host a conference call at 10h00 CET . A supporting presentation has been published on the KPN website : ir.kpn.com . You can register for the call via this link . Company profile APG APG Group is one of the world's largest independent pension fund managers with pension assets of c . € 575bn ( as of Q4 2020 ) , representing over 30,000 employers and 4.7m participants in the Netherlands , with offices in Amsterdam , Heerlen , Brussels , New York , Hong Kong , Shanghai and Beijing . On behalf of its clients ( all of which are Dutch pension funds ) , APG has been an active infrastructure investor since 2004 , investing c . € 16.5bn to date and managing > 35 direct stakes in portfolio companies . APG's investments include assets within energy and utilities , telecommunications and transport infrastructure . For more information : KPN Royal Dutch Telecom Investor Relations Wilhelminakade 123 3072 AP Rotterdam E - mail : ir@kpn.com End of Announcement - EQS News Service