Tele Columbus, the third largest German cable network operator, has announced the launch of a capital increase by way of a rights offering for the repayment of the equity bridge loan and part of a second lien facility for the primacom acquisition and to partly fund the purchase price for the pepcom acquisition upon closing. The new shares for the rights offering originate from a capital increase from existing authorised capital and a capital increase as resolved by the extraordinary general meeting on 14 September 2015. Tele Columbus expects gross proceeds from the offering in the amount of approximately €382.7 million.
Tele Columbus says it will offers 70,864,584 new shares in a public rights offering. The subscription price per new share is €5.40, which implies a discount to TERP (theoretical ex-rights price) of 33.1 per cent (based on Tele Columbus AG’s closing XETRA share price as of October 16th 2015). The new shares, with full dividend rights as from January 1st 2015, will be offered to the shareholders at a ratio of 4 to 5, i.e. four existing shares entitle the shareholder to subscribe for five new shares. The subscription period is expected to start on October 21st and to run until (and including) November 3rd. Subscription rights will be traded on the regulated market of the Frankfurt Stock Exchange from October 21st to 3ctober 30th.
Tele Columbus will publish a securities prospectus following the approval by the German Federal Financial Supervisory Authority (BaFin) expected for today which will form the basis of the subscription offer that will be published in the Federal Gazette (Bundesanzeiger) tomorrow.