TPG Telecom Ltd
(ASX:TPM), formerly SP Telemedia, has announced a $70 million capital raising and says it’s on track to achieve the company’s earnings guidance for the full year.
The company says proceeds from the capital raising are to be used to reduce debt and following the proposed acquisition of PIPE Networks for around $350 million.
The raising will consist of a share placement by book-build to sophisticated and professional investors and an offer to existing shareholders.
TPG says it expects to report net profit after tax for fiscal 2010 of between $52 and $57 million.
Unaudited results for the five months to December 31, 2009 showed net profit after tax of $22.5 million.
TPG Telecom reported a profit for the 2009 financial year.
