2degrees shareholders tapped for further cash

Eric Hertz File photo

Shareholders in Two Degrees Mobile have stumped up more funds for the country's newest mobile phone operator.

Trilogy International New Zealand LLC, Tesbrit B.V. and Hautaki Trust bought 4.8 million shares at US$1 apiece last month, according to documents lodged with the Companies Office.

That takes the total equity raised this year alone to US$24.3 million after three previous share issues, on top of last year's US$44.5 million injection.

Chief executive Eric Hertz has said the company plans to spend another $100 million boosting the size and capacity of its network and rolling out 30 stores nationwide. That would take total capital expenditure to $400 million.

Last year the shareholders bought more shares at 75 US cents apiece.

In March, 2degrees said it had 11 per cent of the nation's 5.237 million mobile phone users, eating into the duopoly of major players Vodafone New Zealand and Telecom.

Hautaki kept its holding at 10.3 per cent of the company.

2degrees grew out of a controversial government decision 10 years ago to give Maori the right to buy a third generation radio spectrum frequency at a discounted price.

The mobile phone operator, which is privately held, lodges its financial statements with the Companies Office on a time-lag, and last reported a loss of $52 million in the nine months ended December 2009.