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26 Sep 2008 07:00
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FOR IMMEDIATE RELEASE
26 September 2008
PME AFRICAN INFRASTRUCTURE OPPORTUNITIES PLC
("PME")(AIM: PMEA.L; PMEW.L)
PMEΒ announcesΒ anΒ investment inΒ theΒ Econet WirelessΒ group
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PME African Infrastructure Opportunities plc,Β an investment company established to invest in sub-Saharan AfricanΒ infrastructureΒ and infrastructure related opportunities, announcesΒ todayΒ theΒ exchange of contracts forΒ itΒ toΒ investΒ into a subsidiary company of the Econet Wireless groupΒ ("EWG").
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PME's investment will allow EWG to accelerate the build-out of its regional network infrastructure and thereby achieve better economies of scale. EWG willΒ continue to be responsible for running the network and providing all management and technical expertise going forward.
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EWG is a Botswana based international telecommunications operator, with operations and investment interests inΒ Zimbabwe,Β Botswana,Β Nigeria,Β Burundi,Β Lesotho,Β KenyaΒ andΒ theΒ United KingdomΒ as well asΒ a minority interest in aΒ USΒ based operator with operations inΒ New Zealand,Β Haiti,Β BoliviaΒ and theΒ Dominican Republic.Β Β EWG has a wealth of experience in building and managing large telecommunications networks internationally with a particular focus onΒ Africa.
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PMEΒ willΒ invest $10 millionΒ in cashΒ by way of equity and debt financing into a joint venture with EWG for the expansion ofΒ anΒ EWGΒ ownedΒ GSM network inΒ Central Africa, which in itsΒ latestΒ fiscal yearΒ was loss making as a result ofΒ theΒ limitedΒ turnoverΒ associated with aΒ GreenfieldΒ projectΒ of this nature.
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The investment inΒ EWGΒ will beΒ PME's fifth completed transaction and takes total completed investments to $89.5Β million.
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Richard Bouma,Β CEO of PME Infrastructure Managers LimitedΒ commented:Β
"PME believes that sub-SaharanΒ Africa's overall andΒ continued economic development andΒ theΒ spectacular growth in mobile penetration ratesΒ that have been witnessed over theΒ last yearsΒ are inextricably linked.Β Β Due to a number of considerations,Β some countriesΒ haveΒ laggedΒ significantlyΒ in terms of mobile penetration.Β Β We believe this situation will change rapidly,Β and will be driven by investment inΒ improvedΒ network quality,Β expandedΒ coverage andΒ increasedΒ competition.Β Β PME isΒ delighted to be investingΒ inΒ EWG."
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Further enquiries:
Principle Capital on behalf of Anne Dalen +44 20 7240 3222
PME Infrastructure
Managers Limited
Smith & Williamson Siobhan Sergeant +44 20 7131 4000
Corporate Finance Limited
Fairfax I.S. PLC James King +44 20 7598 5368
Bell Pottinger Dan de Belder +44 20 7861 3232
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