Tuesday June 30, 08:09 AM
UPDATE 1-TomTom prices rights issue at 4.21 euros per share
AMSTERDAM, June 30 (Reuters) - Dutch navigation device maker TomTom (Amsterdam: TOM2.AS - news) priced its planned rights issue at 4.21 euros per share to raise 359 million euros ($503 million) gross.
TomTom, struggling under debt from its purchase of Dutch digital map maker Tele Atlas (Amsterdam: TAAGM.AS - news) for 2.9 billion euros last year, said it would offer the right to buy 5 new shares for every 8 shares held, or a total 85.3 million new shares.
The issue price is a 36.5 percent discount to the theoretical ex-rights price, said TomTom, which makes portable navigation devices for cars and mapping software for handheld computers.
It said two weeks ago it wanted to raise 430 million euros, made up of the rights issue and a private placement of 71 million, to reduce debt.
TomTom will hold an extraordinary shareholders meeting at 0800 GMT on Tuesday to approve the rights issue, private placement and other items.
TomTom shares closed at 8.15 euros on Monday. A total of 124.8 million shares were outstanding, according to the latest data from May 25 on the Web site of Dutch market regulator AFM.
(Reporting by Gilbert Kreijger; Editing by Dan Lalor)
($1 = 0.7143 euro) Keywords: TOMTOM/
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