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Telekom Austria Launches €1bn Capital Increase

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Telekom Austria Aktiengesellschaft, with the approval of Telekom Austria’s supervisory board, has resolved on a capital increase targeting net proceeds in the amount of up to EUR 1.0 bn by offering up to 221,500,000 newly issued no-par value ordinary bearer shares (the “New Shares”).

The New Shares will be issued following a share capital increase from authorized capital and will be carrying dividend rights as of 1 January 2014, including the intended dividend of EUR 0.05 per share for the financial year 2014. The capital increase will consist of an offering to existing shareholders (the “Rights Offering”), and potentially followed by private placements of New Shares to qualified investors in Austria and other selected countries, including in the United States to qualified institutional buyers (QIBs) as defined in Rule 144A under the US Securities Act, and outside of the United States to certain other eligible institutional investors in reliance on Regulation S under the US Securities Act (the “Rump Placement” and, together with the Rights Offering, the “Offering”), said a release from the company.

“The excellent operational performance in the third quarter 2014 already showed a trend reversal for our Group. With the capital increase we will be able to further develop Telekom Austria Group. The proceeds of the capital increase we will be used to strengthen our balance sheet, boost infrastructure investments especially in Austria. Furthermore we will continue our expansion with focus on convergence as well as in-market consolidation and even consider expansion via new operations”, says Hannes Ametsreiter, CEO of Telekom Austria Group.

The Rights Offering will commence on 10 November 2014 and is expected to end on 24 November 2014 (the “Subscription Period”). In the Rights Offering, shareholders of Telekom Austria holding existing shares of Telekom Austria as of 7 November 2014, 24:00 (midnight) Central European Time, will be granted one subscription right for each existing share and will be invited to exercise their subscription rights at a price of EUR 4.57 per New Share (the “Rights Offering Offer Price”).

Wahengbam Rorrkychand

View all contributions by Wahengbam Rorrkychand


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