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Externet board to ask EGM for mandate to raise capital

The board of Externet, the telecommunications unit of Hungarian IT-cum-media company econet.hu, will ask shareholders for a mandate to raise capital as much as 125% at an EGM on October 10, the invitation to the EGM published on Friday reveals.

The board will ask for a mandate to raise registered capital up to 50% between the time of the EGM and the end of 2008, and up to 50% again between January 1, 2009 and December 31, 2010. The issue price will be no lower than 10% under the turnover-weighted average closing price in the previous 30 days but must not fall under Ft 562.

Externet shares last traded at Ft 680.

The board will also propose merging with its recently acquired unit VIVANET.

Externet closed the acquisition of VIVANET in H1. The purchase gave it 15,000 subscribers, bringing the total to about 50,000.

The board will also ask for a mandate to buy treasury shares up to 50% of registered capital, or if capital is raised, up to 25% of registered capital until April 9, 2010. The shares will be purchased at a price between 80% and 120% of the previous day's close. (MTI – Econews)