Citic Telecom plans rights issue to fund Macau acquisition

Citic Telecom International, a telecommunications services provider that is majority-owned by China’s Citic group, plans to raise at least HK$1.82 billion $235 million from a rights issue. The company has set the subscription price at a 26.8% discount to Friday’s close.

Citic Telecom said in an announcement yesterday that it will use the proceeds from the offering to finance part of its acquisition of Companhia de Telecomunicacoes de Macau CTM, Macau’s only full-service telecoms company.

The company already owns a 20% stake in CTM, and said in January that it is paying $1.16 billion to buy Cable Wireless Communications’ CWC 51% controlling stake and...