ATC 2.27% 11.3¢ altech chemicals ltd

advantel sells china business

  1. 11,223 Posts.
    May offer some hope to those holding


    US-based Colt Financial to acquire AdvanTel subsidiary 16:12 28/5/2003


    ADVANTAGE TELECOMM. No.131489803


    Financial news brought to you by AAP



    SYDNEY, May 28 AAP - US-based private investor group Colt
    Financial has offered $18 million for a subsidiary of Advantage
    Telecommunications Ltd (AdvanTel).
    Colt, keen to take advantage of AdvanTel's China gateway
    business, wants to acquire Orotel Pty Ltd and list the business on
    London's Alternative Investment Market (AIM).
    Colt's business model involves aggregating a several small to
    medium telecommunications businesses under the single ownership of
    an AIM-listed company.
    Orotel is the first anticipated acquisition in this regard.
    Australian-listed AdvanTel has operations in Hong Kong, China,
    the UK and US.
    Colt is owned by US and Hong Kong investors, with offices in
    London.
    Under the terms of the offer, AdvanTel will sell all of the
    issued share capital of Orotel in exchange for the issue to
    AdvanTel of $12 million of secured three per cent preference shares
    in the AIM-listed company, secured by the Orotel shares.
    Colt is in the process of finalising negotiations with an
    AIM-listed company with respect to this transaction.
    The terms of the preference shares include an option for
    AdvanTel to distribute the preference shares to its shareholders.
    Colt will also provide financial assistance to AdvanTel and its
    subsidiaries in an aggregate amount of approximately $6 million.
    In the interim, Colt has offered to provide secured working
    capital loan facilities to Advantel (UK) to fund the continued
    operation of the business prior to closing of the deal.
    AdvanTel chief executive Mark Stewart said AdvanTel had made a
    substantial investment in Asia to develop its international
    licensed operations and had a strong customer base in China, Asia
    and the West.
    "With the support of Colt, AdvanTel is uniquely positioned to
    develop its business over the coming months," he said.
    The Colt offer has been accepted by the AdvanTel board subject
    to shareholder approval at an extraordinary general meeting planned
    for July.
    Colt says the merger of these operations under its business
    model will be advantageous for AdvanTel shareholders because the
    value per share has the potential to be substantially higher than
    the current stock price, and the capital available will ensure
    implementation of a viable business plan.
    Subject to satisfaction of certain minimum requirements, it is
    anticipated the transaction will be finalised in mid to late July
    2003.
    AAP



 
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