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UPDATE 1-Deutsche Telekom considers sale of T-Mobile Netherlands - sources
October 20, 2015 / 5:48 PM / 2 years ago

UPDATE 1-Deutsche Telekom considers sale of T-Mobile Netherlands - sources

* Eyes sale at about 8 times EBITDA, or almost 5 bln euros -source

* Sale would fit with strategy to focus on packaged services

* Dutch company is one of few pure mobile players in portfolio (Adds details of possible valuation, Deutsche Telekom strategy, context)

By Harro Ten Wolde

FRANKFURT, Oct 20 (Reuters) - Deutsche Telekom is considering selling its T-Mobile Netherlands business, according to two sources familiar with the matter, in a deal that could be worth about 5 billion euros ($5.7 billion).

T-Mobile Netherlands is one of Deutsche Telekom’s few pure mobile players, and a sale would fit with the German company’s strategy to focus on offering packaged services, which include internet services as well as television and mobile.

Deutsche Telekom earlier this year sold its stake in mobile operator EE to BT at a valuation of 7.9 times operating earnings before interest, tax, depreciation and amortisation (EBITDA).

One of the sources said that Deutsche Telekom was looking for a similar multiple for T-Mobile Netherlands, which had EBITDA of 630 million euros last year. Such a multiple would value the Dutch business at almost 5 billion euros.

Deutsche Telekom declined to comment.

T-Mobile Netherlands is the country’s third-largest mobile operator, with a market share of 15-20 percent of industry revenues in the first quarter of this year, according to data from Dutch telecoms authority ACM.

Vodafone is second with 20-25 percent, while KPN leads the market with about 30-35 percent.

$1 = 0.8811 euros Reporting by Harro ten Wolde; Writing by Victoria Bryan; Editing by Pravin Char

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