Incumbent Telekom Austria (TA) is planning a €500m capital raise, according to a local media report.
Austrian daily Der Standard reported that the TA management informed the supervisory board, which includes major shareholders America Movil (AMX) and…
Incumbent Telekom Austria (TA) is planning a €500m capital raise, according to a local media report.
Austrian daily Der Standard reported that the TA management informed the supervisory board, which includes major shareholders America Movil (AMX) and OeIAG, about two weeks ago.
The new cash is required to participate in the frequency auction later this year. TA expects to spend between €300m and €500m for the spectrum, but it would also like to use money to finance acquisitions in the CEE region. The company is said to be interested in Serbian cableco SBB.
According to the paper AMX supports the increase and would participate in it in order to avoid diluting its 23.7% stake.
State holding OeIAG’s position is more complicated. It would have to participate in the capital raise with around €70m if it wanted to keep a blocking minority of above 25%. OeIAG currently has 28.42%. But it might be difficult to get political support for a capital raise prior to the election of a new parliament taking place in late September.
OeIAG CEO Rudolf Kemler was quoted saying that he did not intend to dilute the state holding’s stake. To keep it at the current level it would have to invest around €140m if the capital was increased by €500m.
Telekom Austria placed a €600m hybrid bond in late January 2013.
