GCM Resources Regulatory News (GCM)

22 Jan 2007 11:07

Global Coal Management PLC22 January 2007 22 January 2007 Strategic Investment in Bangladesh's Leading PSTN Operator providing Fixed, Wireless Loop, Data and Internet Service Global Coal Management plc ("GCM"), formerly Asia Energy Plc, (AIM: GCM)announces it has signed a Memorandum of Understanding ("MOU") to make a furtherstrategic investment in Bangladesh by subscribing for 26.5% of the equity inPeoples Telecom and Information Services Ltd ("PeoplesTel"). The US$5 millioninvestment is subject to the approval of the Bangladesh Board of Investment ("BOI"). GCM has identified PeoplesTel as an exciting investment opportunity which alsobrings significant benefits to the development of the Phulbari Coal Project ("the Project") by ensuring that modern and extensive telecommunication networksand infrastructure are in place across all areas (mine site, transport corridor,port operations etc.) of the Project. Steve Bywater, Global Coal Management's CEO commented: "I am delighted with this investment in PeoplesTel. It demonstrates ourstrong desire to play a positive role in the development of Bangladesh'seconomic infrastructure and is entirely consistent with our long term commitmentto Bangladesh. It will also ensure that we have a world class telecomsinfrastructure for the Phulbari Coal Project. We remain focused on implementingthe Phulbari Coal Project." PeoplesTel, an established Bangladesh fixed line telephone operator since 1989,is currently undertaking a rapid expansion plan. In excess of US$15 million hasbeen invested to date by PeoplesTel's existing shareholders, including thefounder of the company Tim Nurun Nabi. Mr Nabi has also founded a number ofsuccessful enterprises in Bangladesh, including Hayes (Bangladesh) Limited andHayes-Haier Appliances Company Limited, which is a joint venture with Haier ofChina, the largest manufacturer of white goods in China. PeoplesTel's expansion plan for the next 5 years is to provide world class voiceand data services across Bangladesh, targeting 1 million new subscribers andfocusing on the developing rural regions. PeoplesTel has BOI approval to investup to US$379 million of domestic and foreign investment to provide fixed line orwireless telephone connections in Bangladesh. This gives PeoplesTel the abilityto grow rapidly by reinvesting cash flow without needing further Governmentapprovals. The US$5 million investment will be used by PeoplesTel to acquire the capitalequipment (primarily handsets and electronic switching devices) to add a further55,000 fixed line and wireless loop subscribers to the network. This willsignificantly increase the company's turn-over and cash flow positions and allowPeoplesTel to continue to expand its network, services and subscribers. Thenetwork currently being completed is able to handle approximately 1 millionsubscribers without the need for additional major infrastructure to beinstalled. Currently, PeoplesTel has 120 operational exchanges throughout all 4 regions(North West, North East, South West and South East) of the country and anadditional 23 CDMA 2000 1X 450 MHZ WLL BTS have been integrated into thenetwork in December 2006. PeoplesTel currently employs over 280 people. PeoplesTel is strategically positioned to secure a license for Dhaka City(expected to be issued in 2007). It owns the largest range of wireless spectrumof any operator in Bangladesh, including the valuable 3G compliant 450MHzspectrum, and has recently secured a VoIP License. PeoplesTel, having recently completed a 17km fibre optic ring around Dhaka City,has full interconnect agreements in place with the major cellular operators andfixed line operators, including the government owned BTTB. These companiescollectively access approximately 15 million subscribers. PeoplesTel has leasedan additional 208km fibre optic backbone to connect to the densely populated(approximately 7 million people), and high GDP generating, region of Chittagong. For Further Information: Stephen Bywater Cathy Malins or Annabel Leather Chief Executive Parkgreen Communications Ph: +44 (0)207 290 1630 Ph: +44 (0)207 851 7480 Graham Taggart Finance Director Ph: +44 (0)207 290 1630 Notes to Editors Global Coal Management plc: Global Coal Management (formerly Asia Energy plc) is a London based companyquoted on the London Stock Exchange's Alternative Investment Market ("AIM").The Company's primary activity is the development of the Phulbari Coal Projectin Northwest Bangladesh into a world class open pit mine, adhering to thehighest national and international environmental and social standards. The minewill have a life of more than 30 years and at full capacity will produce 15million tonnes a year of mostly export quality metallurgical and thermal coal.Its objective is to start mining activity once it has Government of Bangladeshapproval for the Scheme of Development, following the Government election in2007. For further information: www.asia-energy.com Peoples Telecommunication & Information Services Ltd: PeoplesTel has a licence to operate fixed, wireless local loop along with voicedata, image and all forms of telecommunication services in Bangladesh.PeoplesTel has been in operation since 1989 as rural operator and converted to anational operator since 2005. PeoplesTel has a huge network covering Bangladesh. PeoplesTel has over 6000 KM of Microwave links covering all the major cities ofBangladesh. PeoplesTel has already installed four gateway switches, 120 localswitches, 3 BSC, 34 BTS with the latest CDMA 2001X 450 MHZ dual carrier state ofthe art wireless local loop services. PeoplesTel has the necessary humanresources to implement its expansion plan and provide a consistently highstandard of service. For further information: www.ptelco.net This information is provided by RNS The company news service from the London Stock Exchange