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Eisa gradually unfolds funding arrangement

Eisa gradually unfolds funding arrangement

Eisa is "well progressed" in finalising the funding arrangements for its $300 million acquisition of OzEmail, the company announced in a statement to the Australian Stock Exchange yesterday.

Eisa announced its plans to purchase the consumer business arm of OzEmail, owned by Uunet, in mid February, but at the time would not reveal how it planned to pay for the deal.

The company said yesterday it has narrowed its options to a small group of companies involved in media, ecommerce and network infrastructure, one or more which will become core partners.

"While capital markets options continue to be explored, it is expected that the bulk of funds will be provided by corporate investors with strategic business interests that complement the combined Eisa/OzEmail business," the statement said.

Officials said if more funding is required beyond the core group of partners, further options will be considered. These include private placement to overseas institutions, private placement to Australian institutions, rights issue to Eisa shareholders, and debt finance, the statement said.


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