ASX-listed telco PowerTel has announced plans to raise $110.6 million through a rights listing.
According to a company statement, the funds will be used to complete planned network rollout, expand the network's capacity and geographical reach, repay existing short-term borrowings, and fund ongoing operations including customer acquisition.
Shareholders have been offered the right to acquire one new PowerTel share for every four entitled shares they hold at January 29 this year.
The move has been backed by US-based telco Williams Communications Group, already a majority shareholder in PowerTel, and joint venture DTU (DownTown Utilities). Not only will Williams take up the new shares issued to it through the planned rights issue, it will also underwrite the balance of the issue through its subsidiary WilTel Communications.
DTU is a joint venture between power groups EnergyAustralia, CitiPower and Energex.