As expected, Tesco were unable to participate in the recent rights issue as they were an overseas entity. Nice one Freshtel, certainly know how to kick your best shareholder in the guts. November 23, 2006
TESCO, the world's second-largest retailer, has increased its stake in Melbourne-based internet telephony company, Freshtel, agreeing to invest another £5 million ($A12.3 million) by way of a private placement of 17,135,453 shares at about 72¢.
After the placement, Tesco will hold about 12.34 per cent of Freshtel's issued capital, up from the 6 per cent it took up in December 2005 in an initial agreement forged with Freshtel founder and chief executive Mike Carew.
Total Tesco Freshtel investment was about $22M now worth $0.4M. Ummm, thats gotta hurt. Down about 80% and now shareholding diluted by another 50%.
Can't see any more cap raises coming from Tesco in a hurry.
FSG Price at posting:
1.2¢ Sentiment: None Disclosure: Not Held
