Hautaki holding in 2degrees cut

Pan-Maori investor the Hautaki Trust is to reduce its shareholding in new mobile phone company 2degrees after failing to raise enough capital to sustain its 20 per cent stake.

Trust director and 2degrees chairman Bill Osborne said that the trust had needed to raise about $20 million from its stakeholders as part of a capital raising by 2degrees shareholders, but could muster only $4m.

As a result, its shareholding in the fledgling phone company would sink to about 13 per cent.

The other shareholders are the United States-based Trilogy International, the majority owner, and London's Communication Venture Partners.

Mr Osborne said they would take up the shareholding Hautaki had to relinquish.

He was confident the other shareholders would be "sympathetic" to Hautaki buying back shares if it raised more equity in the future.

There were two reasons for Hautaki's capital-raising shortfall, Mr Osborne said.

"Maori don't understand the asset class, it's something that's foreign.

"And because they are invested in assets which are not liquid, they can't raise cash quickly, especially in this market.

"Property is not selling as it was.

"We still believe telecommunications is an excellent asset class and an important one for Maori to invest in.

"Hautaki will try to maintain its shareholding on behalf of all Maori as future equity is offered."