The operation will be accompanied by the issuance of 2.078 billion ordinary nominative shares, with a nominal value of RON 0.1 each. The shares will be underwritten within one month of the publication in the Official Gazette of the decision of RCS&RDS shareholders regarding raising the share capital, according to the Mediafax news agency.
According to specialists, this measure reveals an acute need for financing. Also, shareholders or other entities outside the company, that would have provided lending to RCS&RDS, would have received company stock in exchange for their money.
RCS&RDS invested aggressively in the development of its business in the past few years, with most funds coming from bank loans. The company’s largest loan, worth $500 mln, was taken out in December 2007, and was used for financing projects for expanding broadband internet and landline and mobile phone service coverage.
