Satnav maker TomTom issues new shares

Car satellite navigation system maker TomTom is to issue new shares to the value of €430m with the aim of reducing group debt, the company confirmed to news agencies on Sunday evening.

Some €100m-worth of shares have been placed privately with two private investment firms, tv impresario John de Mol’s Cyrte and the Pont family’s Janivo Holding, Tom Tom said.
CEO Harold Goddijn told Reuters news agency he and three other company founders will also participate in the rights issue for €169m.
The rest is underwritten by a banking consortium consisting of Royal Bank of Scotland, Rabobank, ING, Goldman Sachs and Deutsche Bank.
‘The proceeds will be used to pay down part of our debt,’ Goddijn told Reuters. TomTom had €1.16 bn of net debt by the end of March.
The company has been trying to cope with its debt since winning a costly bidding war for map maker TeleAtlas last year, which it eventually bought for €2.9bn.
The news of the rights issue had been reported by the Wall Street Journal at the weekend.

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