ScotPower boosts float value of telecoms arm to pounds 2.2bn
Tuesday 09 November 1999
Scottish Power said the new price range of 300p to 325p, which puts a value on Thus of pounds 2.14bn to pounds 2.29bn, reflected the success of the book building exercise being conducted by Goldman Sachs, the global co-ordinator of the flotation.
Last week, Ian Russell, Scottish Power's finance director, said that the United States investment bank has had a highly positive response from investors, including US institutions.
Final pricing of the shares is due on Wednesday, when conditional dealings will begin. Some 49.9 per cent of Thus stock is to be sold to institutions around the world.
Thus provides telecom, data and call-centre services in addition to web access through Demon Internet, which it acquired for pounds 66m last year. Analysts estimate that Demon accounts for around one-third of the Thus float value.
Scottish Power shares closed down 9.5p at 579p even though analysts estimated that the increase in the Thus float range is worth around 20p to 25p for each share in the parent company.
In the year to March, Thus, formerly known as Scottish Telecom, earned net operating profit of pounds 11.6m on sales of pounds 166.1m.
Its major customers include Scottish and London-based companies, which buy web hosting as well as telecoms networks and other Internet services.
With Thus, Scottish Power hopes to match the success of alternative telecoms network provider Energis.
Its shares have risen around eight-fold since it was floated by National Grid Group in 1997.
- 1 Scottish referendum: So how about the English now being given a chance to split from England?
- 2 London council removes 'unacceptable' Stamford Hill posters telling women which side of the road to walk down
- 3 Kim Kardashian 'nude pictures' leaked on 4chan in new celebrity hacking attack weeks after Jennifer Lawrence scandal
- 4 Matthew Miller: American sentenced to hard labour in North Korea 'wanted to be Snowden II'
- 5 Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
London council removes 'unacceptable' Stamford Hill posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan in new celebrity hacking attack weeks after Jennifer Lawrence scandal
Isis in Syria: 60,000 Kurds flee terror in new exodus
Alan Henning kidnapping: Wife appeals for Isis to release 'peaceful and selfless' British aid worker
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Archbishop of Canterbury admits doubts about existence of God
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...