TomTom announces €500m share issue

Car navigation system maker TomTom is to issue shares worth a maximum of €500m to finance its takeover of digital map-maker Tele Atlas. TomTom made the announcement following the close of trading on Monday.

The company also said that it already owns 29.9% of Tele Atlas which is valued at €800m. This stake was paid for with cash (€600m) and a short term loan.
The share issue will be placed privately with institutional investors and is expected to close on December 4.
TomTom expects the takeover of Tele Atlas to be completed in April 2008 and to contribute to share profitability two years later.
The company says it has not changed its turnover forecast for this year of between €1.7bn and €1.8bn.

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