Incumbent Telekom Austria (TA) is likely to launch a €1bn (US$1.28bn) rights issue before the end of the year, market conditions permitting, two sources close to the situation were quoted telling Reuters.
In August, TA shareholders approved the…
Incumbent Telekom Austria (TA) is likely to launch a €1bn (US$1.28bn) rights issue before the end of the year, market conditions permitting, two sources close to the situation were quoted telling Reuters.
In August, TA shareholders approved the capital increase aimed at protecting its investment-grade rating.
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 telco said at the time.
TA’s largest shareholders, Carlos Slim’s America Movil (AMX), and Austrian state holding company OeIAG, have committed to supporting the capital hike.
AMX CEO Daniel Hajj commented that the rights issue would help the company, which has a €3bn market cap, benefit from investment opportunities in Central and Eastern European markets. TA currently has mobile operations in seven CEE countries.
The telco declined to comment on the report.
