Oxford St. Leederville, page-8

If I read the details correctly it looks like the negative price action is due to share dilution


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AdvanTel buys UK calling card operator for $77m
11:05, Tuesday, 2 July 2002

Sydney - Tuesday - July 2: (RWE) - Advantage Telecommunications
Ltd will acquire prepaid calling card operator First National
Telecommunications Group of the UK for about $77 million cash and scrip.
AdvanTel expects revenues to exceed $210 million in its first
year of combined operations with forecast net profit of $27 million.
Forecast earnings per share for the 12-month period as a
combined entity is 9c on a diluted basis.
Of the consideration, the scrip element is made up of about
93 million AdvanTel shares at 42c each to be issued in equal tranches at
six-monthly intervals over a 24-month period from completion.
The cash component of $37.5 million comprises $8.6 million
payable on completion, $2.6 million payable six months from completion
and $21 million payable 12 months from completion.
A final payment of a maximum of $5.3 million is payable 21
months from completion upon first-year EBITDA targets being met by First
National.
The company also announced it had placed about 27 million shares
at 42c each for a total of $11.3 million, converting its debt facility
arrangements for equity and raising funds to fulfil immediate
requirements to carry First National network traffic.
AdvanTel chief executive Mr Mark Stewart said: "Overnight,
AdvanTel has become a recognised player in the telco sector, showing
strong financial performance with an impressive and growing blue-chip
customer base.
"We are debt-free, profitable with strong earnings growth."
First National has a five-year trading history and calendar 2002
revenues forecast to exceed $175 million.
Shares in Advantage Telecommunications were down 1.5c to 45.5c
when it resumed trading this morning.
Copyright © 2002 RWE