America Movil said it had secured the funds to proceed with its proposed acquisition of a controlling stake in Dutch operator KPN.

The company entered into binding credit facilities (subject to standard conditions with “reputable global financial institutions”) to fund its plan to buy all ordinary shares in KPN that it does not already own.

It will also today submit an offer memorandum to the Netherlands Authority for the Financial Markets for approval.

The Mexico-based operator group headed by Carlos Slim said on 9 August that it intends to make a voluntary tender for all issued and outstanding shares in the capital of KPN at an offer price of €2.40 per share — a total of €7.2 billion if all shareholders opt to participate.

America Movil currently holds 29.77 per cent of KPN’s stock but the offer will take this to more than 50 per cent, if successful.

KPN previously said it had noted and will “carefully consider” America Movil’s offer. It added that it will issue a statement if America Movil proceeds with a formal bid.

An agreement between America Movil and KPN that the former would not increase its stake beyond 30 per cent expired at the end of July, not long after an €8.1 billion deal for Telefonica to buy KPN’s German unit E-Plus was announced. America Movil reportedly did not approve the E-Plus transaction due to reservations.

The prospective bid from America Movil has not been universally welcomed with the KPN Foundation, an independent body intended to safeguard the company’s interests, concerned about the Mexican company’s intentions and the implications for the E-Plus sale.

America Movil would need to gain the support of all other shareholders to secure majority control of the group, if the KPN Foundation exercised its call option on a certain number of KPN shares.

KPN said it plans to hold a shareholder meeting on 2 October regarding the sale of E-Plus to Telefonica. Shareholders as of 4 September will be able to vote on the deal.