Television broadcaster Ten Network Holdings Ltd
(ASX:TEN) says it has raised $138 million after completing an institutional placement of 120 million shares at $1.15 a share.
The company says the placement was significantly over-subscribed with strong support from new and existing shareholders.
Executive chairman Nick Falloon says the proceeds will be used to pay down debt and enhance balance sheet flexibility.
However Ten Network’s major shareholder Canadian Canwest Global Communications was unable to participate in the capital raising, and as a result will see its holding in Ten fall to 50.1 per cent.
According to the Australian, debt laden Canwest was not among the buyers as it continues to struggle under $4.5 billion in debt.
The paper reports Ten executive chairman Nick Falloon saying the size of the issue was determined by the fact that Canwest wanted to keep its stake over 50 per cent.
Ten Network Holdings 2008 net profit was the company’s best in five years.
