NATIONAL TELECOMS GROUP LIMITED 2003-01-03 ASX-SIGNAL-G
HOMEX - Sydney
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NTG is pleased to announce its intention to offer all shareholders,
subject to ordinary commercial underwriting conditions, a
non-renounceable pro-rata rights issue on the basis of 1 new share
for every 1 share held and at a subscription price of 11 cents per
share.
The issue will be supported by two of NTG's directors and major
shareholders, Managing Director Tony Hakim and Non-Executive Director
Morry Fraid, who have agreed in principle to offer a substantial
underwriting commitment to the issue directly or through associated
companies. The issue, priced at 11cents per share and if fully taken
up, will raise approximately $13.4 million before costs.
The persons underwriting the rights issue have also agreed to provide
loans up to a maximum of $5 million each in the period prior to the
rights issue being completed.
Further to the company's announcement on 12 December 2002,
particularly the continued impact of the negative publicity on sales,
the Board has decided to strengthen NTG's balance sheet by
undertaking this rights issue. The funds will be employed to increase
NTG's working capital and repay any shareholder loans used in the
period prior to the rights issue being completed. NTG is also
appointing NM Rothschild & Sons (Australia) Limited to undertake a
review of NTG's strategic options and to assist on the rights issue.
Ron Nissen, Executive Chairman, stated that: "the Board's decision to
undertake this major recapitalisation will strengthen NTG's position
in the market place and the Board is grateful for the support of
NTG's two largest shareholders for their financial commitment to the
Company to achieve this new position. All shareholders will have the
opportunity to fully participate in the rights issue."
A prospectus is being prepared and will be made available to
shareholders when completed and after lodgement with the ASIC.
N J V Geddes
SECRETARY
NTG
national telecoms group limited
