Acquisition

15 Feb 2008 15:30

GCM Resources PLC15 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 hasagreed to invest £2 million in cash for an equity interest in PeoplesTelecommunication & Information Services Ltd ("PeoplesTel"), Bangladesh's PSTNoperator. In March 2007 GCM invested £2.6 million in PeoplesTel, and this additionalinjection of capital will increase GCM's strategic investment from 26.5% of thecurrent capital to 37% of the enlarged capital. The unaudited accounts forPeoplesTel for the year ended 30 September 2007 show the company made a lossequivalent to £1 million and had net assets at that date equivalent to £7million. From the date of this announcement the investment will be treated as anassociate in GCM's accounts. PeoplesTel has a licence to operate fixed, wireless local loop along with voicedata, 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 beused by PeoplesTel to secure a National License (incorporating Dhaka city) andto roll out services in Dhaka City providing growth opportunities. PeoplesTel has completed a 120km fibre optic ring around Dhaka City and has fullinterconnect agreements in place with the major cellular operators and fixedline operators, including the government owned BTTB. These companies havecollective access to approximately 30 million subscribers. PeoplesTel hasleased an additional 208km fibre optic backbone to connect to the denselypopulated (approximately 7 million people), and high GDP generating, region ofChittagong. PeoplesTel have established nationwide digital radio backbone whichis of approximately 6,000km. GCM has identified PeoplesTel as an exciting investment opportunity as it alsobrings significant benefits to the development of the Company's flagship coalproject at Phulbari. It ensures that modern, extensive telecommunicationnetworks and infrastructure are in place across all areas (mine site, transportcorridor, port operations etc.) of the Phulbari Coal Project. Steve Bywater, GCM's Chief Executive commented; "This additional investment in PeoplesTel demonstrates our confidence inBangladesh. We are keen to play a positive role in the development ofBangladesh's economic infrastructure and this investment is entirely consistentwith 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 StockExchange's Alternative Investment Market ("AIM"). The Company is strategicallyfocused on coal and related investments across a range of geographical locationsincluding: South Africa, Bangladesh and China with the aim of sourcing potentialopportunities that offer near return whilst mitigating risk through thedevelopment of a diverse portfolio of assets. Primarily focused on theexploration and development of coal deposits the Company also targets relatedinfrastructure such as power plants and telecommunications networks to build onrelated 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 acrossBangladesh and aims to provide reliable, widespread, convenient andcost-effective telephone services. PeoplesTel was incorporated in November 2004as the successor to the Bangladesh Rural Telecom Authority (BRTA) Pvt Ltd(established in 1989), with responsibility for 99 Thanas (smallestadministrative areas of Bangladesh). PeoplesTel now has over 30,000 customerssupported by strong infrastructure, a workforce of 200 and a highly experiencedmanagement 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