TPG Telecom completes $73m retail reinvestment plan
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The news: TPG Telecom has announced the completion of its retail reinvestment plan that opened on the 20 November raising total proceeds of $73.4 million, less than the original target of $138 million.
The numbers: The retail reinvestment plan represented 20.6 million new fully paid ordinary shares at a price of $3.56 per new share, with a total take-up rate of approximately 53%.
The retail component of the raise followed an institutional placement of $300 million, which closed last month.
Shares last closed at $3.69.
Under the new plan, TPG has issued 103.7 million new shares and raised gross proceeds of $373 million, which will raise their ability to repay bank borrowings to $2.7 billion.
The context: TPG said the purpose of the reinvestment plan is to enable shareholders to reinvest their capital return into new shares to offset impact of the capital return on TPG's free-float market and increase minority ownership of the company.
The new shares will be trading on the ASX on 11 December.
The source: ASX
