Media Centre
Uecomm Announces Funding Facility Extension
Uecomm Limited today announced that it had reached agreement with United Energy to extend the date upon which the $80 million funding facility provided by United Energy can be drawn upon by Uecomm.
Uecomm’s Chief Executive Officer, Mr Peter McGrath, said, 'I am pleased to announce that Uecomm today reached agreement with United Energy for an extension of the last day upon which the funding facility can be drawn, by 18 months to 29 December 2004. The facility is provided by United Energy under a legal agreement between Uecomm and United Energy and can only be changed with the consent of both parties. The facility does not need to be repaid until 29 June 2007.'
Mr McGrath commented that, 'Today’s announcement confirms Uecomm’s continued access to the United Energy funding facility, notwithstanding the recently announced proposed scheme of arrangement between United Energy, AlintaGas and AMP Henderson. AlintaGas has already advised the market that it would assume the funding facility currently provided by United Energy. This gives Uecomm a strong level of confidence about its ability to fund the continued growth of the business.'
Uecomm’s Chairman, Mr Peter Shore said, 'I would like to assure shareholders that the proposed scheme of arrangement involving our major shareholder, United Energy, has not impacted Uecomm’s outlook for 2003. Our operational and financial performance has improved consistently over the last five quarters and we have every expectation that this trend will continue.'
Mr McGrath commented about the potential sale of the 66% shareholding in Uecomm by saying, 'AlintaGas stated in its release that it looked forward to working with Uecomm to maximise the Company’s value to the benefit of all shareholders. Our preliminary meetings with AlintaGas have given us every reason to believe that this is very much their intention. Our understanding is that, if the scheme of arrangement is approved, the 66% shareholding in Uecomm currently held by United Energy will be transferred to AlintaGas. AlintaGas may decide to sell part or all of this holding and, if this occurs, there would be a number of possible outcomes.'
Mr McGrath re-iterated that it was 'business as usual at Uecomm in terms of the Company providing high quality broadband data services to the corporate and government market place.'
Further information will be provided to the market regarding the scheme of arrangement as it relates to the interests of Uecomm shareholders as and when it becomes available.
