Telekom Austria (TA) plans to convene an EGM on 14 August to approve a capital increase of up to €1bn (US$1.35bn) and a new supervisory board.
The Austrian incumbent’s largest shareholders, Carlos Slim’s America Movil (AMX) and Austrian state…
Telekom Austria (TA) plans to convene an EGM on 14 August to approve a capital increase of up to €1bn (US$1.35bn) and a new supervisory board.
The Austrian incumbent’s largest shareholders, Carlos Slim’s America Movil (AMX) and Austrian state holding company OeIAG, committed under their syndicate agreement signed in April to support the capital increase.
TA said in a bourse filing late yesterday that its management board will be authorised to issue up to 221.5 million new bearer shares. The proceeds to the company must not exceed €1bn.
The Vienna-listed telco said the capital increase will strengthen its capital structure, protecting its investment-grade rating. The company noted that it will also continue to invest in infrastructure, research and development and product and service innovations.
AMX CEO Daniel Hajj has said previously that the capital hike will better position TA to benefit from investment opportunities in Central and Eastern European markets.
AMX, which holds just above 50% of TA after recently buying an extra 23.5% stake in the company, will nominate eight candidates for the new 10-member supervisory board. OeIAG, which has a 28.4% stake, will nominate the remaining two, as per their shareholder pact.
AMX’s nominees include its CFO Carlos Garcia Moreno. Current chairman Rudolf Kemler is set to remain on the board, although not necessarily in the same role. Going forward, TA will have one deputy chairperson instead of two.
The EGM agenda also includes a settlement proposal with two former executives from whom TA has been seeking damages in connection with criminal cases.
