PMEA.L Regulatory News (PMEA)

17 Mar 2008 14:59

PME African Infrastructure Opps PLC17 March 2008 17 March 2008 PME African Infrastructure Opportunities plc ('PME' or 'the Company') (AIM: PMEA.L; PMEW.L) Update on investments PME African Infrastructure Opportunities plc, the AIM listed fund investing ininfrastructure projects across sub-Saharan Africa, announces an update onprogress in its investing activities. Deal Flow Since the last progress report issued on 4 October 2007, PME's objective hasbeen to concentrate on completing the due diligence of the projects alreadyidentified and to close those that have met PME's investment criteria as soon aspracticably possible. Completed transactions As announced on 1 February 2008, PME completed its first transaction, in thetelecommunications sector, in Uganda, committing US$2.5 million with an optionto invest a further US$17.5 million. PME's second completed transaction is also in the telecommunication sector andhas been announced today in a separate announcement. The deal commits PME toinvest up to US$26 million in a Tanzanian 3G telecommunications operation. Transactions under negotiation PME notes that its early transactions have been concentrated in the fast movingtelecommunications sector and as set out below, has more investments in thepipeline for this sector. The early focus on telecommunications has been due, inpart, to the fact that two of the transactions were at an advanced stage ofdevelopment when presented to PME and also that the sector, being wellregulated, facilitates execution. However, it remains the intention of PME toadhere to the diversification criteria set out in the Admission Document. We are currently in the process of negotiating the following transactions acrossa wide range of sectors: Transportation: Discussions in respect of the rail concession opportunity mentioned in theAdmission Document, are continuing with the assistance of the Company's localassociates. PME has received letters of intent from certain key co-investors andstrategic partners interested in working with the Company on this project andexpects to complete the consortium in the near future. The Company is also able to report that the Investment Manager has made goodprogress in negotiations for the acquisition of a 50% stake in a South Africanprovider of operations and maintenance (O&M) services to railways and has agreedoutline terms with the vendor for PME to acquire its shares. The details of thisproposal will be finalised in due course. Housing: The Company has signed a memorandum of understanding (MOU) for a joint venturewith a company in Angola to develop housing in the country, to be occupied bythe employees of international oil companies. PME would take a 75% stake in thecompany. Energy: The Investment Manager is working with the Minister of Energy, Water and Minesin a country in east Africa covering a proposal to build, own and operate a 20MW hydro electric power project. Telecommunications: PME envisages developing a cluster strategy with a view to creating a largerregional corporate entity focused on delivering next generation voice and dataservices to customers in Central Africa. Accordingly, in addition to the twotransactions already completed, it is pursuing the following potentialtransactions. PME has signed contracts with respect to a third transaction in this sector,with respect to the roll-out of a GSM network in the Great Lakes region ofAfrica, under which PME has undertaken to provide US$10m of financing. Theagreement is subject to certain conditions precedent which are envisaged will besatisfied in the near future. Pipeline The above projects, if completed, would require a total equity commitment ofover US$110m, or approximately 60% of the funds raised on admission to AIM inJuly 2007. Whilst concentrating on completing the projects set out above, PMEhas investigated a number of other opportunities, five of which have been worthyof further consideration. These are in the construction, transportation, energyand telecommunications sectors. We expect deal flow to be strong for theforeseeable future. Further enquiries: Principle Capital on behalf of Anne Dalen +44 20 7240 3222PME InfrastructureManagers Limited Smith & Williamson Azhic Basirov +44 20 7131 4000Corporate Finance Limited Fairfax I.S. PLC James King +44 20 7598 5368 Bell Pottinger Dan de Belder +44 20 7861 3232 On behalf ofHelvetica (Isle of Man)Company Limited Clara Parisot +41 798 249 788 Note to Editors: - PME African Infrastructure Opportunities plc ('PME') is a company investing insub-Saharan African infrastructure and infrastructure related industries. Itsshares were admitted to AIM in July 2007 raising US$180 million. - PME was established to invest in sub-Saharan African infrastructure andinfrastructure related industries with a view to generating attractive returns,principally through capital growth. It is targeting opportunities arising fromyears of under investment in sub-Saharan African infrastructure where thatinfrastructure will be instrumental in allowing the continent's economicdevelopment to continue to grow. - The Investment Manager is PME Infrastructure Managers Limited ("PMEIM"). TheInvestment Manager is responsible for identifying new investment opportunities. - PMEIM is a joint venture between Principle Capital Holdings S.A. (AIM: PCX.L),Unicos Partners LLP (holding company of the Helvetica Group of companies),Masazane Capital (Pty) Limited and the interests of Richard Bouma, CEO of PMEIM. This information is provided by RNS The company news service from the London Stock Exchange