No Equity Boost: Vocus Slumps
Shares in ASX-listed telecommunications outfit Vocus slumped yesterday after the company denied reports that it might be planning a money raising exercise.
According to a Macquarie Group report, unless Vocus manages to sell its Vocus NZ subsidiary valued at as much as $438 million it would “need to consider a an equity raisings of $150-200 million.
That saw Vocus shares spurt as high as $3.89 on the ASX. But Vocus was quick to hose down the speculations, in the afternoon telling the ASX and would-be investors: “The board and management remain comfortable with Vocus’s debt position. There is no current intention to raise additional equity.”
The shares dropped like a spent rocket to $3.51, but finished the day at $3.52. Unanswered question: is the company still working towards a sale of Vocus NZ.