Microsoft and Liberty Media have today increased their stake in broadband provider Chello, ahead of the Dutch company's IPO on 31 May.
Chello is offering some 26,904,000 shares (10 per cent of the company) in the issue at a price range of £13 and £17 per share to institutional investors worldwide and retail investors in The Netherlands and the US.
In addition, Microsoft and Liberty Media have agreed to purchase a further 9,277,500 ordinary shares apiece, representing some seven per cent of the company, through a private placement at the IPO price, concurrent with the IPO.
Chello currently offers services in eight countries in Oceania and Europe. It hopes to raise £650m through the stock issue to fund network capacity and infrastructure expansion, development of operational support systems and investment in ecommerce operations.
The additional funds will also be needed to cover ongoing operating losses and a planned repayment of £55m in advances from its parent company, United Pan-Europe Communications N.V.
"Chello has become one of the leading broadband companies in a very short time," said Roger Lynch, chief executive of Chello.
"This marks an important strategic step in the company's development. We believe that broadband is the future of the internet and this step allows us to accelerate our commitment to growth. We are proud to welcome Microsoft and Liberty Media as key shareholders, and are pleased that they share our vision of the future of broadband and Chello," he added.
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