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Bulgaria's Allterco planning capital increase

Author Mario Tanev
Bulgaria's Allterco planning capital increase Allterco / All rights reserved.

SOFIA (Bulgaria), December 20 (SeeNews) - Bulgarian telecommunications and IoT company Allterco [BUL:A4L] said on Friday that it is planning to increase its capital by 3 million levs ($1.7 million/1.5 million euro) to 18 million levs via a new share issue.

The funds raised are intended to finance the development of the group's distribution network, the maintenance of its storage bases in the US and Hong Kong, and other purposes, the company said in a bourse filing.

The board of directors is planning to file a prospectus for approval by the Financial Supervision Commission in early 2020, where the emission value and other parameters of the capital increase will be decided.

Allterco has been restructuring its business in the past few years, trying to divest its telecommunications business and focus on its IoT units.

Allterco is currently seeking a buyer for its telecommunications business in Asia, namely its 100% interest in Singapore-based Allterco PTE and Malaysia-based Allterco SDN, as well as its 49% stake in Allterco Ltd. Thailand. The company sold five of its telecommunications subsidiaries to Norway's LINK Mobility Group for 7.9 million euro ($8.8 million) earlier this year. Allterco sold its units in Bulgaria - Teravoice, Tera Communications and Allterpay, as well as its Romania-based subsidiary Teracomm RO and Macedonia-based Tera Communications DOOEL.

At the same time, the company is consolidating its control over its IoT subsidiaries, by acquiring the remaining 33% interest in both Allterco Trading and Global Teracomm earlier this year.

As at 9:45 CET on Friday, Allterco shares traded 2.7% higher at 3.8 levs on the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)