|
DAVNET GENERAL MEETING APPROVES CONVERTIBLE NOTES ISSUE Davnet Ltd. Friday, July 13, 2001 Sydney, July 13, 2001) -: Davnet Limited (ASX code: DVT), the international provider of integrated broadband communications solutions, today received an overwhelming shareholder approval for a Convertible Notes Issue, to be known as the Davnet Income-Secured Convertible (DISC), at a General Meeting held at The Theatrette, Australian Stock Exchange in Melbourne. The approval of the resolution allows Davnet to proceed with the proposed issue, within three months of today`s meeting, of up to 95,000,000 convertible notes at an issue price of $0.40. Key elements of the proposed DISC issue include: - Secured interest payments of approximately 8% to October 2004; - Flexibility to convert into ordinary shares in October 2004 at a discount to the market share price at that time; - Participation in any growth in the ordinary share price for the holder beyond a level of around 50% above the current ordinary share price. BNP Paribas is structuring advisor and manager for the DISC Issue. Davnet`s Chairman and CEO, Mr Robert H. Turner, said the approval of the DISC issue was a vote of confidence in Davnet`s business strategy and approves the third stage of a capital raising program announced in March 2001. Mr Turner said funds raised from the issue would be used to fund organic business growth, further strengthen the company`s balance sheet, and position the company to take advantage of value-priced assets becoming available as part of the expected rationalisation of the telecommunications industry. "This is a significant moment in the turnaround of Davnet. DISC will enable us to raise funds, in what is a very volatile market, at cost-competitive rates," Mr Turner said. "A key element of the continued development and growth of Davnet will be our ability to maintain and grow critical mass. We anticipate there will be rationalisation within the Australian and international telecommunications markets and we are committed to playing a part in that rationalisation." The General Meeting was the first meeting of Davnet shareholders at which Mr Turner officiated as Chairman. Mr Turner paid tribute to the previous Chairman, Mr O`Shea for his role in guiding the company through its rapid development since listing in 1998. Mr Turner also introduced the recently appointed Vice-Chairman of Davnet Ltd, non-executive director Mr Brendan Brown, who with Mr Turner will form the Office of the Chairman, and executive director and Group Chief Operating Officer Mr Bob Henson, who will share operational and management responsibilities with Mr Turner in the Office of the CEO. At the General Meeting, Mr Turner also announced a number of strategic sales and operational initiatives to take the company forward, including the creation of: · Davnet Access Group, a platform for managing and developing customer relationships; · Davnet Solutions Group, a platform for delivering value-added services, and · Davnet Service Group, a shared services group aimed at reducing operating costs and improving services to customers. As well as approving the Convertible Notes Issue (pursuant to ASX Listing Rule 7.1), the General Meeting considered, and approved, a resolution relating to the allotment and issue of shares and options during the previous 12 months (pursuant to ASX Listing Rule 7.4). About Davnet Davnet (www.davnet.com.au) is a international integrated broadband communications provider of high-speed connectivity, content and value-added services to businesses within premium multi-tenant office buildings in selected cities throughout Australia, Asia and North America. Davnet focuses on providing solutions to end-user business customers, especially those with operations in multiple locations. As at 31st March 2001, the Davnet Group served 19,000 customers. It also provided in-building broadband communications networks to clients in 143 "live" commercial buildings in 9 cities, and had licenses to access several hundred more properties. In addition to high-speed Internet connectivity, Davnet offers local and international Internet Protocol-virtual private networks, voice and fax over Internet Protocol, video and telephone conferencing, unified messaging, hosting, co-location, video on demand, video telephony and design/e-commerce services and consulting. It also offers information and data storage, protection and management solutions. Davnet is a "Cisco Powered Network Partner". |
|
| aus der Diskussion: | Davnet u. Aussie Online !!!!!- Wie geht es wohl weiter ??? |
| Autor (Datum des Eintrages): | Grueny (03.08.01 10:54:01) |
| Beitrag: | 5 von 7 (ID:4119601) |
| Alle Angaben ohne Gewähr © wallstreetONLINE | |