BigAir raises $2m in placement

Fixed WiMax operator BigAir (ASX:BGL) has raised $2 million through a share placement to institutional investors.

The company has placed 11.9 million new shares at $0.17 per share, an eight per cent discount to the five-day weighted average as of close of trading last Friday.

BigAir said it will use the proceeds to enhance its working capital.

Under the arrangement, BigAir will place 6.7 million new shares shortly, with the balance to be issued at the same price pending shareholder approval at a December meeting.

BigAir plans to use the EGM to ask permission for its chairman and another board member to participate in the placement.

BigAir on Monday revealed it had agreed to terms with Clever Communications (ASX:CVA) over an off-market takeover offer.

Clever operates fixed wireless networks in Melbourne, Sydney, Brisbane and Adelaide, and provides internet, VPN, VoIP and related services.

Under the agreement, BigAir will offer 0.35 shares plus 1.82 cents cash for each Clever share. Clever has agreed to unanimously recommend the offer.

“The merger of Clever and BigAir is expected to create significant cost, revenue and capex synergies,” Clever chairman, David Williams, said.

BGL shares ended Tuesday's trading 2.63 per cent higher at $0.195. CVA shares grew 7.35 per cent on Monday, and a further 8.22 per cent on Tuesday, to close at $0.079.


Copyright © 2010 IDG Communications, Inc.

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