Telecom Plus Regulatory News (TEP)

6 May 2005 07:30

Telecom Plus PLC06 May 2005 Telecom plus PLC (the "Company" or "Telecom plus") Placing The Company is pleased to announce that it has conditionally raised £12.3million (before expenses) by the placing (the "Placing") of 6,000,000 newordinary shares of 5p each ("Placing Shares") at a placing price of 205 penceper Placing Share. This represents 8.8 per cent. of the issued share capital ofthe Company following the Placing, and a discount of approximately 1.4 per cent.to the closing mid market price of 208 pence per Ordinary Share on 5 May 2005. Under the Placing, the Placing Shares have been conditionally placed withinstitutional investors by KBC Peel Hunt Ltd ("KBC Peel Hunt"). The board ofdirectors ("the Board") will use the net proceeds of the Placing to providefurther working capital and strengthen the Company's balance sheet. The Placing Shares will be allotted credited as fully paid and will rank paripassu in all respects with the Company's existing ordinary shares of 5p each,including the right to receive all dividends and other distributions declared,made or paid on or after the date of their allotment.Application will be made to the UK Listing Authority and the London StockExchange plc for the Placing Shares to be admitted to trading on the OfficialList and the London Stock Exchange's market for listed securities ("Admission")and it is expected that Admission will become effective and that dealings willcommence in the Placing Shares on 1 June 2005. The Placing is conditional inter alia on the passing of the resolution to beproposed at an Extraordinary General Meeting of the Company to be held at 11.30a.m. on 31 May 2005 and Admission. Background to and reasons for the Placing The Company has grown significantly over the last few years, and as previouslyreported, its turnover from supplying gas and electricity has become asignificant proportion of the Group's business. This rapid growth in energyturnover from a low base has presented the Company with a new set of demands onits financial resources.As previously advised, the Company has begun to put in place a hedging programmeto protect against future volatility in the wholesale energy market, and itsstrategy will be to maintain what the Directors believe to be an hedging profilebroadly in line with the industry. A systematic hedging policy requires asubstantially larger balance sheet than the Company currently has. In addition,settlement terms in respect of energy are more demanding than those of theCompany's traditional telecoms business. The Company has therefore taken thedecision to seek to raise approximately £12m (net of expenses) through the issueof the Placing Shares. The proceeds of the Placing will strengthen the balancesheet and provide further working capital for the Company. The Company expects to announce preliminary results for the year ended 31 March2005 on 10 June 2005, and they are expected to be in line with marketexpectations. A circular to shareholders, including a notice of Extraordinary General Meeting,is being posted to shareholders today. Copies of the circular to shareholderswill be available from KBC Peel Hunt Ltd, 111 Old Broad Street, London EC2N 1PHuntil 31 May 2005 and will be submitted to the UK Listing Authority, and will beavailable for inspection at the UK Listing Authority's Document ViewingFacility, which is situated at; Financial Services Authority, 25 The NorthColonnade, Canary Wharf, London, E14 5HS. 6 May 2005 For further information: Telecom plus PLCStephen Davis - Finance Director 020 8955 5000 Gresham PR LtdNeil Boom 020 7404 9000 This information is provided by RNS The company news service from the London Stock Exchange