26 Sep 2008 07:00
FOR IMMEDIATE RELEASE
26 September 2008
PME AFRICAN INFRASTRUCTURE OPPORTUNITIES PLC
("PME")(AIM: PMEA.L; PMEW.L)
PME announces an investment in the Econet Wireless group
PME African Infrastructure Opportunities plc, an investment company established to invest in sub-Saharan African infrastructure and infrastructure related opportunities, announces today the exchange of contracts for it to invest into a subsidiary company of the Econet Wireless group ("EWG").
PME's investment will allow EWG to accelerate the build-out of its regional network infrastructure and thereby achieve better economies of scale. EWG will continue to be responsible for running the network and providing all management and technical expertise going forward.
EWG is a Botswana based international telecommunications operator, with operations and investment interests in Zimbabwe, Botswana, Nigeria, Burundi, Lesotho, Kenya and the United Kingdom as well as a minority interest in a US based operator with operations in New Zealand, Haiti, Bolivia and the Dominican Republic. EWG has a wealth of experience in building and managing large telecommunications networks internationally with a particular focus on Africa.
PME will invest $10 million in cash by way of equity and debt financing into a joint venture with EWG for the expansion of an EWG owned GSM network in Central Africa, which in its latest fiscal year was loss making as a result of the limited turnover associated with a Greenfield project of this nature.
The investment in EWG will be PME's fifth completed transaction and takes total completed investments to $89.5 million.
Richard Bouma, CEO of PME Infrastructure Managers Limited commented:
"PME believes that sub-Saharan Africa's overall and continued economic development and the spectacular growth in mobile penetration rates that have been witnessed over the last years are inextricably linked. Due to a number of considerations, some countries have lagged significantly in terms of mobile penetration. We believe this situation will change rapidly, and will be driven by investment in improved network quality, expanded coverage and increased competition. PME is delighted to be investing in EWG."
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