GCM Resources PLC - Acquisition
RNS Number:1360O
GCM Resources PLC
15 February 2008
PRESS RELEASE
GCM Resources plc
GCM to invest an additional £2 million in PeoplesTel
GCM Resources plc ('GCM' or 'the Company') is pleased to announce that it has
agreed to invest £2 million in cash for an equity interest in Peoples
Telecommunication & Information Services Ltd ('PeoplesTel'), Bangladesh's PSTN
operator.
In March 2007 GCM invested £2.6 million in PeoplesTel, and this additional
injection of capital will increase GCM's strategic investment from 26.5% of the
current capital to 37% of the enlarged capital. The unaudited accounts for
PeoplesTel for the year ended 30 September 2007 show the company made a loss
equivalent to £1 million and had net assets at that date equivalent to £7
million. From the date of this announcement the investment will be treated as an
associate in GCM's accounts.
PeoplesTel has a licence to operate fixed, wireless local loop along with voice
data, image and all forms of telecommunication services in Bangladesh.
PeoplesTel, an established Bangladesh fixed line telephone operator since 1989,
is currently in the process of a rapid expansion plan. The investment will be
used by PeoplesTel to secure a National License (incorporating Dhaka city) and
to roll out services in Dhaka City providing growth opportunities.
PeoplesTel has completed a 120km fibre optic ring around Dhaka City and has full
interconnect agreements in place with the major cellular operators and fixed
line operators, including the government owned BTTB. These companies have
collective access to approximately 30 million subscribers. PeoplesTel has
leased an additional 208km fibre optic backbone to connect to the densely
populated (approximately 7 million people), and high GDP generating, region of
Chittagong. PeoplesTel have established nationwide digital radio backbone which
is of approximately 6,000km.
GCM has identified PeoplesTel as an exciting investment opportunity as it also
brings significant benefits to the development of the Company's flagship coal
project at Phulbari. It ensures that modern, extensive telecommunication
networks and infrastructure are in place across all areas (mine site, transport
corridor, port operations etc.) of the Phulbari Coal Project.
Steve Bywater, GCM's Chief Executive commented;
'This additional investment in PeoplesTel demonstrates our confidence in
Bangladesh. We are keen to play a positive role in the development of
Bangladesh's economic infrastructure and this investment is entirely consistent
with our long term commitment to Bangladesh and the Phulbari Coal Project.'
For Further Information:
GCM Resources plc: Pelham Public Relations:
Steve Bywater Charles Vivian
Chief Executive Ph: +44 (0)207 743 6672
Ph: +44 (0)207 290 1630 Email: charles.vivian@pelhampr.com
Graham Taggart Klara Kaczmarek
Finance Director Ph: +44 (0)203 159 4395
Ph: +44 (0)207 290 1630 Email: klara.kaczmarek@pelhampr.com
JP Morgan Cazenove
Nominated Advisor
Michael Wentworth-Stanley
Ph: +44 (0)207 588 2828
Charlotte Keenan
Ph: +44 (0)207 588 2828
Notes to editors:
About GCM Resources plc:
GCM Resources plc is a London based company quoted on the London Stock
Exchange's Alternative Investment Market ('AIM'). The Company is strategically
focused on coal and related investments across a range of geographical locations
including: South Africa, Bangladesh and China with the aim of sourcing potential
opportunities that offer near return whilst mitigating risk through the
development of a diverse portfolio of assets. Primarily focused on the
exploration and development of coal deposits the Company also targets related
infrastructure such as power plants and telecommunications networks to build on
related areas of the coal mining industry and support local development.
For further information: www.gcmplc.com
Peoples Telecommunication & Information Services Ltd:
PeoplesTel is operational nation wide in four out of five zones across
Bangladesh and aims to provide reliable, widespread, convenient and
cost-effective telephone services. PeoplesTel was incorporated in November 2004
as the successor to the Bangladesh Rural Telecom Authority (BRTA) Pvt Ltd
(established in 1989), with responsibility for 99 Thanas (smallest
administrative areas of Bangladesh). PeoplesTel now has over 30,000 customers
supported by strong infrastructure, a workforce of 200 and a highly experienced
management team well positioned to expand the company.
For further information: www.ptelco.net
This information is provided by RNS
The company news service from the London Stock Exchange
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