News
Telco’s shareholders to vote on capital raising plan next month.
Chilean operator Entel on Thursday revealed that it plans to issue new shares in order to raise 350 billion pesos (€459 million).
The telco made the disclosure in an announcement to the Santiago Stock Exchange.
Shareholders will vote on the capital increase at an extraordinary general meeting on 4 April, Entel said.
It aims to carry out the increase that same month.
Entel did not disclose what it will use the proceeds for, but according to a Reuters report published by Peruvian news outlet Gestion, it will finance its investment plan.
The telco has made sizeable investments at its Peruvian operations in the past couple of years, impacting negatively on its financial performance.
Entel – historically Chile’s international and long-distance provider, but now one of a number of fixed-line and mobile operators in the country – entered Peru in 2013 via the $410.6 million acquisition of NII Holdings’ Nextel business there.
It posted a CLP1.1 billion (€1.4 million) net loss in 2015.
According to the Reuters report, Entel’s latest published investment plan earmarked spending of close to $2.1 billion (€1.9 billion at current exchange rates) in the 2015-2017 period.
