Contel

Contel: to lift halt at 11am. Enters into placement agreement with 3 placees, who collectively have agreed to subscribe for 66m new shares (10.9% of enlarged share base) at an issue price of 2.556 cts /sh, for an aggregate consideration of $1.7m. This represents a 14.8% discount to the counter’s last closing px at 3 cts. The co intends to use 40-70% of the net proceeds for daily expenses and working capital, and the remaining 30-60% for acquisitions. Based on FYMar12 numbers, Contel’s NTA will rise from US -0.23 cts to US 0.03 cts, and EPS will fall from US 2.30 cts to US 2.08 cts.