Netherlands – Shareholders of TomTom NV approved a rights issue aimed at
reducing the company’s heavy debt.
shareholders approved to issue more than 85 million new ordinary shares,
confirmed TomTom. The company has now raised close to $600 million (430 million
euro), which also includes its plan to sell an approximate $140 million (100
million euro) stake in the company to Cyrte Investments and Janivo Holding,
debt stems from its purchase of map maker Tele Atlas in June last year for $4.3
billion. In April, TomTom reported
a net debt of $1.5 billion.
An analyst said
the rights issue saves the GPS maker from the threat of bankruptcy, Reuters