Thus emerges from merger financially stable

NEWS Scottish telecoms company Thus has revealed the financial details of its £275m split from parent company Scottish Power which will enable it to slash debts and receive a major cash injection. The debt-for-equity swap will see Scottish Power issue 573 million shares at 48p and raise its stake from 50.1 per cent to between 63 and 72 per cent. In addition, Thus will take a £90m commercial loan from the Royal Bank of Scotland to enable it to continue to operate until March 2004. Scottish Power will then facilitate the split by handing back Thus stock - or cash equivalent - to its shareholder. William Allan, CEO at Thus said in a statement that he expected the split to be completed within two months. An extraordinary general meeting will be held on 31 March when Scottish Power shareholders will be asked to vote on the deal. Under the terms of the split, shareholders will be entitled to take up to 20.6 per cent of the offer.