America Movil (AMX 2.90%) is now fully prepared financially to effect its takeover of Dutch telecom Royal KPN (KKPNY 0.83%). The Latin American firm announced it has "secured the necessary funds" to buy the shares in Royal KPN it does not already own.
In the press release announcing the news, America Movil said it has done so by "[entering] into binding credit facilities subject to customary conditions with reputable global financial institutions regarding the full financing of the Intended Offer." It did not further identify those institutions.
Earlier this month, America Movil indicated its intention to offer 2.40 euros ($3.21) per share in cash for the company via fully owned subsidiary Carso Telecom. At the time, it said that amount represented a 35% premium over Royal KPN's average closing price over the preceding 30 days on the Euronex Amsterdam exchange.
When it made its intentions known, America Movil held just under 30% of the European firm. At the offer price, the remaining shares would cost it $9.6 billion.
