TeamTalk plans placement, rights offer to raise $8.7M

By Gavin Evans

Oct. 23 (BusinessDesk) - Telecommunications provider TeamTalk is planning to raise up to $8.7 million to help fund the expansion of its digital radio network and the upgrade of its Wellington fibre business.

The company will raise $2 million through a placement of 2.7 million shares at 75 cents each to selected institutions and investors. It will also raise about $6.7 million through a one-for-three renounceable rights offer creating about 10.3 million new shares at 65 cents a share.

TeamTalk shares closed last week at 82 cents. Both the placements and rights offer are underwritten by Forsyth Barr.

The company, which last year sold its Farmside rural internet service to Vodafone, is aiming to complete a new digital radio network across the country by June.

Its other main business – CityLink – is upgrading its Wellington service to provide a 5G-capable network in the CBD. The 18-month programme was initiated after the closure of the city’s trolley bus network required the undergrounding of much of the fibre network, using Powerco’s gas ducting.

TeamTalk expects to complete the placement today. The rights offer will open on Oct. 30 and close on Nov. 20.

(BusinessDesk)

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