Australian regional pay television provider Austar United Telecommunications will make a renounceable rights offer to raise AU$200 million.
The company, 73-percent owned by US cable TV operator UnitedGlobalCom, also posted a loss of AU$319.4m for the year 2000.
The multi-million dollar loss after abnormal items was foreshadowed earlier this week. The abnormal items related to the write-off of deferred borrowing costs and goodwill.
The renounceable rights offer will consist of three new shares for every seven existing shares.
The issue would be priced at AU$0.95 per share. Austar's share price was down 15.5 cents or 13.1 percent to AU$1.03 shortly after the announcement.
The company said that UnitedGlobalCom was committed to taking up its 73 percent share of the issue and would underwrite the balance.
The broader market was down one percent.
The troubled operator recently announced a slide in its subscriber base, amounting to 5,100 fewer customers in the three months to December 2000.
ZDNet Staff contributed to this report
