LONDON (Alliance News) - Cable & Wireless Communications PLC said Friday that it raised GBP113.8 million in a placing of 252.8 million shares at a price of 45 pence, equivalent to around 10% of its issued share capital.
Cable & Wireless shares closed Thursday at 45.30p.
The placing was announced Thursday, with the pricing set subsequently, and the funds raised will be used for its USD1.85 billion acquisition of Barbados based telecommunications and technology services group Columbus International Inc.
Cable & Wireless will fund the acquisition through USD707.5 million in cash and the issue of 1.56 billion in new shares to some Columbus shareholders. The remainder of the cash part of the consideration not covered by the funds raised in the placing will be covered by new debt financing.
The placing was conducted by Deutsche Bank AG.
Cable & Wireless said that the acquisition will be earnings neutral in the first full year post-completion, and materially earnings enhancing in subsequent years.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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