MEDIA RELEASE PR38249
ChinaTel Closes US$640 Million in Equity Investments at $3 Per Share
IRVINE, Calif., Feb. 9 /PRNewswire-AsiaNet/ --
ChinaTel Group, Inc. (ChinaTel) (OTC Bulletin Board: CHTL), a leader in
high speed wireless broadband and telecommunications infrastructure
engineering and construction services, today announced it has signed and
received the first combined installments of two stock purchase agreements
calling for a total investment of $640 million into the company. The combined
investment represents 48% of the total outstanding shares, valuing ChinaTel
in excess of $1.33 billion.
The investors have each made initial payments called for under their
respective contracts. By March 1, 2010, ChinaTel will have received $241
million, and the balance of $399 million by June 1, 2010. Proceeds from the
contracts will primarily be used to expand and deploy wireless broadband
networks worldwide in addition to repaying existing financing notes. Full
details of the transactions are available on Form 8-K filed with SEC at
ChinaTel's CEO, George Alvarez, stated, "With this infusion of capital,
we can pursue our global expansion plans, and accelerate the deployment of
the Chinacomm network in the Peoples Republic of China (PRC). We expect to
complete build-out of the first twelve PRC cities by June, 2011. When
completed, the Chinacomm network will be one of the largest wireless
broadband networks in the world."
The investment partners are Excel Era Limited (Excel), a Hong Kong-based
investment group, and Isaac Organization, Inc. (Isaac), a Canadian-based
investor. Excel is investing $480 million and acquiring approximately 159.6
million new shares of ChinaTel's series A common stock to be issued, which
represents 36% of total shares issued and outstanding as of the closing date.
Isaac is investing $160 million and acquiring approximately 53.2 million
newly issued shares, which represents 12% of the total outstanding shares.
The price per share for both transactions is $3.0075.
ChinaTel's President, Colin Tay remarked: "We have worked very hard to
execute transactions beneficial to both our shareholders and our new
institutional investors. We selected these investment partners because they
provide unique alliances that will facilitate ChinaTel's ability to penetrate
additional markets globally."
Isaac Organization has previously served as a strategic advisor to
ChinaTel in addition to developing and managing a portfolio of assets valued
in excess of $5 billion, including significant interests in Asia. "We have
been involved with ChinaTel in an advisory capacity and are very pleased to
take a larger role with the Company. Being very familiar with the ChinaTel
story, Isaac Organization seized the opportunity to invest in the next
generation of a high-demand technology to meet the needs of rapidly emerging
markets," said Tony Isaac, CEO of Isaac Organization. "The timing was right
for this investment, and we look forward to our increased role with and the
future of ChinaTel."
In conjunction with the financing, ChinaTel is appointing Tony Isaac and
Charles Wang to its board, expanding the number of company directors from
four to six. Mr. Wang is CEO of Excel, which has a strategic presence in
numerous markets, including India, Argentina, Peru and Brazil.
"Being asked to join the board of ChinaTel is a great honor. I look
forward to working closely with the management team and bringing my relevant
technology management and public company board experience to ChinaTel," said
Charles Wang.
About ChinaTel Group, Inc.
ChinaTel Group, Inc. (ChinaTel), through its controlled subsidiaries,
provides fixed telephony, conventional long distance, high-speed wireless
broadband and telecommunications infrastructure engineering and construction
services. ChinaTel is presently building, operating and deploying networks in
Asia and South America: a 3.5GHz wireless broadband system in 29 cities
across the People's Republic of China (PRC) with and for CECT-Chinacomm
Communications Co., Ltd., a PRC company that holds a license to build the
high speed wireless broadband system; and a 2.5GHz wireless broadband system
in cities across Peru with and for Perusat, S.A., a Peruvian company that
holds a license to build high speed wireless broadband systems. ChinaTel's
vision remains clear: (i) to acquire and operate wireless broadband networks
in key markets throughout the world; (ii) to deliver a new world of
communications; and (iii) to invest in building long-lasting relationships
with customers and partners to lead the broadband industry in customer
service and responsiveness. Our strategy is to build leading-edge
IP-leveraged solutions advanced by our worldwide infrastructure and
About Excel Era Limited
Excel provides creative financial solutions and funding for private
projects, humanitarian projects and individual clients in niche investment
banking and financial service environments. With over $200 billion under
management, our range of services includes (a) asset management, and (b)
project financing. Our specialty is providing multi-dimensional financing
solutions for our clients by viewing the total picture of the client's goals,
assessing not only financial requirements, but the aggregate of needs in
relation to opportunities, helping each client determine what can be done to
enhance the utilization of their assets. The range of services described
above is not offered to the public, but only upon specific request by
qualified and sophisticated investors.
About Isaac Organization
Isaac is a leading global private investment firm with approximately $5
billion worth of projects under management across a family of funds. Isaac
invests in companies across a broad range of geographies, including the
United States, Canada, Mainland China, Taiwan, and South Korea. Guided by a thorough
approach to due diligence execution, research and market analysis, Isaac Organization
has found one financial truth to be inviolate: growth and real wealth happens over time
and scrupulous due diligence. Isaac's various funds invest in commercial real estate
buildings leased by several agencies of the United States federal government, as well as
by hospitals and medical
clinics, and other industries including technology, telecommunications and
entertainment companies. Isaac is also involved in urban development projects
in Asia. In recent months the company has closed transactions valued at
Safe Harbor Statement
This press release contains forward-looking statements that involve risks
and uncertainties. Actual results, events and performances could vary
materially from those contemplated by these forward-looking statements. These
statements involve known and unknown risks and uncertainties, which may cause
the Company's actual results, expressed or implied, to differ materially from
expected results. These risks and uncertainties include, among other things,
product demand and market competition. You should independently investigate
and fully understand all risks before making an investment decision.
Contacts:
ChinaTel Group, Inc.
Investor Relations
(Toll Free) 1-877-260-9170
investors@chinatelgroup.com
Media: Lewis Goldberg / +1-212-896-1216 / lgoldberg@kcsa.com
SOURCE: ChinaTel Group, Inc.
CONTACT: Investor Relations:
+1-877-260-9170,
investors@chinatelgroup.com;
Media:
Lewis Goldberg,
+1-212-896-1216,
lgoldberg@kcsa.com
both for ChinaTel Group, Inc.
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