Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Key Transaction And 9 For 1 Rights Issue

Cabletalk Group Meeting Approves Key Transaction And 9 For 1 Rights Issue


Auckland 22 June 2001 – Shareholders of Cabletalk Group Limited (NZSE CTG), approved the acquisition of Cabletalk Astute Network Services (CANS) and a $5.8 million rights issue at a meeting today.

Shareholders approved the issue of 21,735 million new ordinary shares at $0.50 per share as partial consideration for the purchase. Shareholders also approved a subsequent public offering (SPO) of 11,600,000 new shares at $0.50 per share, comprising of a 9 for 1 renounceable entitlements issue for existing public shareholders. Rights will be able to be traded on the NZSE from 25 June to 11 July. The SPO will open on 25 June and close on 13 July.

Cabletalk is forecasting an after tax profit (prior to goodwill amortisation) of $2.2 million for the current year. This represents a P/E multiple of 8.2 times on the issue price of $0.50 per share.

CANS is a telecommunications network service company formed by the amalgamation of four telecommunications network building and maintenance companies and its acquisition was proposed as Cabletalk’s key transaction under New Capital Markets (NCM) listing rules. On settlement the company will graduate to the main board of the NZSE.

Cabletalk Group’s independent directors, Mr Ross Keenan and Sir Selwyn Cushing, negotiated a purchase price of $15.352 million for CANS (following an independent valuation by PricewaterhouseCoopers), comprising $4.484 million in cash and $10.868 million in new shares.
ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>

ALSO:

Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>

ALSO:

Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>

ALSO: