Hong Kong-based backhaul operator Citic Telecom is looking to raise between HK$1.82bn (US$235m) and HK$1.85bn (US$238m) from a rights issue, it said in a stock exchange filing.
The new shares will be offered to existing shareholders who are entitled to…
Hong Kong-based backhaul operator Citic Telecom is looking to raise between HK$1.82bn (US$235m) and HK$1.85bn (US$238m) from a rights issue, it said in a stock exchange filing.
The new shares will be offered to existing shareholders who are entitled to three new shares for every eight shares held at a price of HK$2.02 (US$0.26) each. The new shares would equal around 27.3% of Citic’s share capital after the issue, the company said.
Proceeds of the rights issue will be used to part-finance Citic’s acquisition of a 79% stake in Macanese incumbent Companhia de Telecomunicacoes de Macau (CTM) for US$1.16bn.
Joint global coordinators and joint underwriters for the rights issue are Citic Securities, Standard Chartered, DBS Asia, Deutsche Bank, and UBS.
Citic agreed in January to buy out CWC’s and Portugal Telecom’s stakes, who jointly owned 80% of CTM.
In late February, Citic issued 12-year bonds valued at US$450m to help fund the transaction. Before that, in January, it had reportedly been granted a loan of over US$1bn.
The company has already received the green light from shareholders and relevant Chinese governmental and regulatory authorities. However, the deal has yet to receive approval from the Macau government.
In the stock exchange filing, Citic said it expects to complete the acquisition by September 2013.
