Btel raises its capital by HUF 950 mln, plans withdraw
Hungary-based Business Telecom (Btel) announced it will be raising its capital by HUF 950 mln, up to approximately HUF 2 bln, as the new priority shares give priority voting rights with veto power, priority for dividend and the option to name managers, and pre-emptive buy-out right to their owner, SkillInvest Ltd, represented by its manager, Russian businessman Timur Rakhimkulov, Btel said on the web site of the Budapest Stock Exchange (BSE).
BTel announced two months ago that Rakhimkulov would inject the HUF 950 mln in the company through a series of private placements in the coming six months pending the decision of the management board which was taken upon authorization of an EGM of Btel on December 30, 2014.
According to reports, the EGM authorized the management board to raise the company’s capital to more than HUF 3 bln, while the troubled telecommunications company Btel was placed under interim management early in December, a month after it announced the plan of the capital increase. The Hungarian unit of telecoms giant Deutsche Telekom, Magyar Telekom, is suing BTel for HUF 944 mln in unpaid bills, and a subscriber of the company's corporate bonds has launched a liquidation procedure against it.
In addition, Btel expressed intentions to gradually withdraw from the market of telecom service providers, with selling its customer base and network elements and will focus instead on the franchise distribution of its Xprime services — which developed by Btel this year, is a patented operation model for telecom companies that merges online advertisement with traditional telecom services, to be sold on a franchise basis. In line with BTel’s reports, negotiations on the sale of franchise rights are in an advanced stage with both domestic and foreign telecoms.
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