TomTom to raise €430M to alleviate debt

TomTom to raise €430M to alleviate debt
PND maker TomTom is to raise €430 by offering new shares and through a private placement. The net proceeds of this equity offering will be applied towards debt reduction, said the company in a statement.

The Dutch company is to raise €359 million through a right issue to which the four founders - Harold Goddijn; Pieter Geelen; Peter-Frans Pauwels; Corinne Goddijn-Vigreux - will contribute €159M. Another €71 million will be raised through a private placement of shares to Janivo Holding (one of the founding investors in Tele Atlas), and Cyrte Investments, a technology investor owned by Delta Lloyd, the Dutch insurer. Alain De Taeye, founder of Tele Atlas and member of the TomTom management board, will also participate in the equity offering for a total of €1.5 million.

"We believe we have a compelling strategy to develop TomTom into a broadly based navigation solutions company” said TomTom’s CEO Harold Goddijn. “The equity offering we have announced today provides us with a substantially strengthened balance sheet. […] The Founders' and anchor investors' commitment reiterates our strong conviction in the future of our industry and our company."

As a result of this equity offering the four founders will only own 47.2 per cent of the company instead of the 51.5 per cent they previously had. However, “anchor investors” Janivo and Cyrte investment will own together eight percent, which is likely to prevent any hostile takeover.

Monday, June 15th 2009

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