HELSINKI, Finland-NRJ International has withdrawn from its previous commitments for $14.4 million in shares of troubled Finnish handset maker Benefon. Investor Philippe Frangie, who had previously committed to a $12.9 million subscription for Benefon shares, will instead become the company’s main shareholder.
Benefon said it has also received from its creditors subscription commitments for about $2.8 million, which raises the total amount of received subscription commitments to about $15.7 million.
The subscription period ends April 4.
NRJ announced plans in early March to acquire about two-thirds of Benefon through the new share issue directed at both investors and the company’s creditors. Benefon was on the brink of bankruptcy in late February before announcing the new share issue and planned commitments from NRJ. However, at that time, it said it needed a cash injection of about $40 million to survive.
