ATH offers shares

Amalgamated Telecom Holdings Limited (ATH) is offering current shareholders the first preference to buy into the company at a discounted price. ATH announced yesterday a 41 cents discount on shares that new buyers purchase at $2.41.

For every unit owned, a current shareholder can buy 6.66 shares at $2, ATH said.

ATH is selling 63,379,109 new shares under this package.

The aim is to raise approximately $126,760,000, the company said. Funds raised under the offer will be used to recapitalize ATH’s balance sheet by repaying borrowings, providing funding for capital investments and for general corporate and working capital purposes, ATH said.

The offer opens on May 19, 2020 and will close on June 18, 2020, unless extended.

The offer is non-renounceable,

ATH said.

The new shares will rank equally with all fully paid ordinary shares.

The rights offer is not underwritten, ATH said.

Following completion of the offer, the company will have issued a maximum of 63,379,109 new shares, resulting in total shares on issue of approximately 485,483,977 shares. The offer is available to members who registered on or before 5pm, on May 8, 2020.

Shareholders of the company with registered address outside Fiji do not qualify for the offer, ATH said.

“It is not practicable for the company to comply with the securities laws of overseas jurisdictions having regard to the number of overseas shareholders, the number and value of shares these shareholders would be offered and the cost of complying with regulatory requirements in each relevant jurisdiction,” ATH said.

To assist retail shareholders during the coronavirus pandemic, ATH will consider late applications on grounds that the remainder of the shortfall offer of additional shares will be to those who have not accepted the rights issue, within six months from the date of registration of the offer, ATH said.