(Updates with more details)
AMSTERDAM (Thomson Financial) - TomTom NV said it will launch an equity
offering of up to 500 mln eur to refinance part of the financing commitments for
the acquisition of Tele Atlas NV and to reduce financial leverage.
TomTom said it has already acquired about 29.9 pct of the outstanding shares
of Tele Atlas for a total consideration of about 0.8 bln eur, financed by about
0.6 bln eur of cash on its balance sheet and about 0.2 bln under a short-term
credit facility.
The acquisition of the remaining 70.1 pct of Tele Atlas' shares representing
about 2.1 bln eur is expected to be financed from the proceeds of the equity
offering and the 1.85 bln eur senior committed financing provided by the
financing banks.
Following the completion of the offering, TomTom expects the 0.45 bln eur
junior committed financing of the total 2.3 bln from the financing banks will no
longer be required.
If the offer for Tele Atlas is not successful, TomTom intends to return the
proceeds of the offering to shareholders.
The equity offering will be made via an accelerated book-built offering of
up to 500 mln eur and will be structured as a private placement of shares to
eligible institutional investors in the Netherlands and elsewhere.
Book building is expected to close tomorrow, subject to acceleration.
The final terms of the offering, including the final offer price and number
of new ordinary shares to be issued, will be announced following the completion
of the accelerated book-built offering.
The offering is conditional upon the admission of the new ordinary shares to
listing on Euronext Amsterdam.
The number of shares to be included in the offering will be less than 10 pct
of TomTom's outstanding shares.
TomTom will also enter into a lock-up agreement under which it will agree
not to issue any additional shares for a period of 120 days after the offering
is completed.
In addition, the four founding shareholders will enter into a lock-up
agreement under which they will agree not to dispose of any of their indirect
holdings of ordinary shares in TomTom for a period of 120 days.
TomTom also reiterated its guidance for full-year 2007.
Aaron Gray-Block; aaron.gray-block@thomson.com
agb/am/agb/am
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