NordTelekom plans June capital raise to finance expansion in UK

Telco

Listed Hungarian telecom service provider NordTelekom plans a capital raise of at most HUF 200 million and sell a matching number of existing shares at a public share auction in the first half of June, the company said on the Budapest Stock Exchange website on Thursday. The capital raise is designed to finance NordTelekom's plan to offer telephone and internet services in the UK, with focus on the Hungarian community there. Besides, NordTelekom is in talks on cooperation with the Polish service provider Aiton Caldwell, a market leader in VOIP services in Poland, which plans to expand in Hungary. Nordtelekom's major shareholder will sell shares from its holding through a public auction on the bourse at a price between HUF 16 – HUF 20 per HUF 10 face value share. Then it will subscribe the same number of new shares than the number sold at the auction, but no more than 20 million, worth HUF 200m at nominal value, at the average auction price. It will undertake not to sell shares from its holding in the next two years.

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