Telekom Austria completes capital increase
25 November 2014 |
Telekom Austria has raised $1.24 billion in a share sale, which has seen majority-owner América Móvil and state holding company OIAG take up their pro rata shares.
The Austrian operator sold 22.15 million shares, equating to half of its existing stock, 60% of which was acquired by Carlos Slim’s América Móvil. The remaining shares were purchased by the company’s Austrian state holding company (28%) and minority owners.
“Telekom Austria intends to use the net proceeds of the capital increase to re-establish its target capital structure and maintain a credit rating of at least BBB (stable) by Standard & Poor's. This will allow Telekom Austria Group to pursue strategic investment priorities with the aim to strengthen the Telekom Austria Group's operational performance and to return to a sustainable growth profile within the stated sound financial framework,” the company said in a statement on its website.
In particular it highlighted plans to use the capital increase to invest in fibre infrastructure and acquisitions.
América Móvil secured its control of over half of Telekom Austria in the summer, representing its first major presence in the European telecoms market. Slim is expected to utilise Telekom Austria's presence in central and Eastern Europe to build up a significant presence in the CEE region.
As part of the move, the two companies will interconnect their networks to offer voice, roaming, data and mobile services, over what they claim will be one of the world's largest fibre networks. The connection will be established between Miami, US and Vienna, Austria, connecting 47 countries and including back-up between Dallas, US and Frankfurt, Germany.