LONDON (Brand Republic) - Former Mirror Group chief executive David Montgomery is to increase his stake in his new company African Lakes, in a bid to shore up the African ISP鈥檚 stock ahead of a new share placing.
Shares in African Lakes yesterday tumbled to a new low of 16p before recovering this morning to 19p. Montgomery is expected to offer 29p a share when he takes up to 30,000 shares in the company. He will then raise his stake by investing a further £14,000 in 100,000 shares at 14p each.
The ISP, which has just completed the acquisition of Africa Online, announced the share placing a month ago. It hopes to raise a net £8.4m, with which it will fund acquisitions including that of Egyptian ISP MenaNet, understood to be worth £5.3m.