Shareholders of Belgian cable operator Telenet have approved a debt refinancing plan that will allow a cash payout of 6 euros a share by the end of the fourth quarter, the firm said on Saturday.
Telenet announced earlier this month it would make the cash payment in the fourth quarter and might give shareholders a further 1 to 2 euros in the next six to nine months, depending on acquisition and investment opportunities.
It said the funds would be generated from a debt refinancing plan in which the firm would draw a new credit facility of 2.3 billion euros and extend the average maturity of its borrowing to 7.6 years, thereby lowering interest costs on existing debt by 10 percent.
"The extraordinary shareholders' meeting on Friday approved the new senior credit facility and the capital reduction plan and that will lead to the distribution of 6 euros per share by end of Q4," said the spokesman, Jan de Grave.
Telenet provides cable TV, high-speed Internet and telephone services, principally in the Flemish part of Belgium. Its refinancing plan got mixed reactions when announced a month ago as analysts said it made a buyout by a private equity firm or an industry buyer unlikely and could potentially hinder the company's ability to finance growth in the future. Liberty Global, the world's biggest international cable group increased its stake in Telenet in June from 31.3 to 49.7 percent for a total cost of $626.6 million.
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