Investors Show Support For Cabletalk Rights Issue
Auckland, 12 July 2001 – Telecommunications network servicing company Cabletalk Group Limited (NZSE: CTG) today announced that the rights trading period for its current entitlement offer closed yesterday with 2.8 million entitlements traded at an average price of 7.4 cents.
Cabletalk Group, a New Capital Market company, is issuing 10.8m new shares in a 9 for 1 entitlement offer to existing shareholders to help fund its Key Transaction, the acquisition of Cabletalk Astute Network Services Limited (CANS). The capital raised from the rights issue will also provide additional funds for growth.
26 percent of entitlements were traded during the rights period and Cabletalk Group Chairman Ross Keenan is pleased with the level of activity and the prices for both the rights and head shares. The head shares are currently trading at a 9 cent premium on the application price of $0.50 per share.
As a result of the rights trading the company expects to have gained a further 200 shareholders.
“It appears that 74 percent of the entitlements will be taken up by existing shareholders despite the heavy 9 for 1 entitlement and this is very pleasing. Investors understand the company’s business and value the utility-like revenue streams as well as recognising Cabletalk’s growth prospects,” says Ross Keenan.
The closing date for acceptance and renunciation is 5.00pm tomorrow, 13 July, and shareholders must have their applications to BK Registry by this time.