FUTURIS Corporation has announced the acquisition of 19 per cent of Perth-based telco and broadband services provider Amcom Telecommunications.
Under the terms of the transaction, part of which is subject to shareholder approval, Futuris will acquire 55 million shares in Amcom at 10 cents per share.
Futuris will then sub-underwrite a two-for-nine share offer, at 10 cents per share, to Amcom shareholders to raise an additional $6 million.
Futuris, the parent of the Elders farm services network, will also appoint two directors to Amcom’s board.
Amcom initially will place 20 million shares (approximately 8 per cent of expanded capital) with Futuris, with the balance of the shares to be issued to Futuris after Amcom receives the necessary shareholder approval.
In a joint statement, Amcom chairman Tony Grist said: “Amcom intends to assist Elders deal with, and respond to, overtures from telecommunication players for the provision of telecommunication services utilising the Elders network.
“We can assist in the evaluation of the various access platforms to regional Australia to enhance the delivery of telecommunications services to Elders’ clients.
“We wanted shareholders to have the opportunity to participate, so a modest entitlements issue at the same entry price as Futuris was the most appropriate way of ensuring this.”
Amcom will seek approval for the Futuris transaction at its AGM shareholders on November 27.
