Teligent to execute a directed share issue

Teligent AB announced today that the Board of Directors has decided to execute a directed share issue, which will provide the company with approximately SEK 47.5 million.

A total of 2,000,000 shares have been invested by Hagströmer & Qviberg Fondkommission AB on the basis of a so-called book-building bidding procedure at market price. These shares have been acquired by well-reputed Scandinavian institutional investors, which has broadened the institutional ownership in Teligent. This share issue has provided the company with approximately SEK 47.5 million, before deductions for issue expenses. The new share issue corresponds to 9.6 per cent of Teligent’s share capital and votes. After this share issue, Teligent will have a total of 20,863,162 outstanding shares. Teligent’s Board of Directors decided upon the share issue on the basis of authority granted at the Annual General Meeting on 7 April 2005. In order to address of the company’s increase in orders received, Teligent has an immediate requirement to acquire additional equity. The Board of Directors has determined that, if the company is to safeguard business opportunities in the market, then the raising of capital cannot take place at the same point in time as the execution of a new share issue with preferential rights. As a result, the Board of Directors has decided that the share issue shall take place on the basis of a deviation from the preferential rights of the shareholders. Until the new share issue has been registered, the invested shares have been borrowed from Teligent AB’s Board members Olle Isberg and Mikael Karlsson, in order to execute the investment.