Telekom Austria (TA) shareholders have approved a rights issue of up to €1bn (US$1.34bn).
With the supervisory board’s approval, the management board may issue up to 221.5 million new bearer shares within the next five years, the Austrian incumbent…
Telekom Austria (TA) shareholders have approved a rights issue of up to €1bn (US$1.34bn).
With the supervisory board’s approval, the management board may issue up to 221.5 million new bearer shares within the next five years, the Austrian incumbent said in a statement following today’s EGM.
TA’s largest shareholders, Carlos Slim’s America Movil (AMX), and Austrian state holding company OeIAG, which have signed a syndicate agreement, have committed to supporting the rights issue.
The Vienna-listed telco has previously said the rights issue will strengthen its capital structure, protecting its investment-grade rating. It has also noted that it will continue to invest in infrastructure, research and development and product and service innovations.
AMX CEO Daniel Hajj has said the capital hike will help TA to benefit from investment opportunities in Central and Eastern European markets.
Today, TA shareholders also approved a new 10-member supervisory board, eight of whom were nominated by the Mexican telco, which has a 50.8% stake in the company. OeIAG, which has a 28.42% stake, nominated the remaining two. AMX representatives on the new supervisory board include its CFO Carlos Garcia Moreno.
