ASX-listed telecom player United Networks has received an impressive funding of $5 million via a share placement. The telecom group says it will use the capital raised to pursue a number of profitable acquisitions. The company announced that it has received binding commitments from investors that will help the company in funding prospective collaborations and acquisitions.
United Networks will analyze potential acquisitions in the IT managed services and telecom sector and additionally plans to invest in certain organic growth sectors.
Words of United Networks CEO on the occasion
Victor Tsaccounis, Chief Executive Officer of United Networks says the telco is delighted at receiving the strong support for the share placement and is truly pleased to welcome the high-profile domestic institutions and sophisticated investors on board the share register, number of whom have great telco investment experience and expertise.
Tsaccounis adds that United is now better positioned to aggressively pursue its organic growth strategy as well as potential acquisitions in the managed services and telecom industry. The company is also looking forward to updating the market as soon as these exciting opportunities develop.
About United Networks
New South Wales-based United Networks limited is an Australian telecom business that offers its specialized services in data, voice and other value-added services. It’s wide range of product umbrella includes local telecommunications, global roaming SIM cards, WiFi solutions and location-based services such as emergency services.
The company is now ready to grow its business via new product developments and launches, customer acquisitions and white-label partnerships in the country as well as internationally. Through the share placement, United Networks successfully issued about 79.4 million fully paid ordinary new shares priced at 6 cents and represented a 10% discount on the last closing share price.
The telecom has recently been on an acquisition spree. It most recently acquired Sydney-based Red Telecom earlier in October. United also acquired a Sydney-based software company C3 Innovations in August and telecommunication company Broadland Solutions in 2019.