RNS Number : 4564T
PME African Infrastructure Opps PLC
06 December 2011

6 December 2011


PME African Infrastructure Opportunities plc

("PME" or the "Company")



Further Update on Telco Investments


The Company announced on 2 November 2011 that the board of PME (the "Board") had instructed the investment manager, PME Infrastructure Managers Limited ("PMEIM" or the "Investment Manager") to investigate the realisation options available to the Company in relation to its telecommunication investments, Dovetel (T) Limited (trading as "Sasatel") and TMP Uganda Limited (trading as "Broadband Company"), based on PMEIM's review of the progress of these businesses.


The Investment Manager has concluded its review and has presented the Board with its recommendations, as set out below. 


Dovetel (T) Limited (trading as "Sasatel")


The Investment Manager believes that there is inherent value in the business of Sasatel and is, therefore, with the agreement of the board, in the process of actively seeking a buyer for the business.   The Board, on the recommendation of the Investment Manager, intends to continue providing interim financing for a limited period whilst the sale process is conducted and the Board continues to evaluate its options for the business. A further announcement in this respect will be made shortly.


TMP Uganda Limited (trading as "Broadband Company")


The Investment Manager has concluded that Broadband Company has not performed as anticipated, as a result of the highly competitive market for broadband services in Uganda and the continued difficult economic environment. The Investment Manager has sought to identify a suitable buyer for the business but without success.  Therefore, in consultation with the Board which has accepted the Investment Manager's recommendation, the board of Broadband Company has decided to recommend to the shareholders of Broadband Company a winding up of the company without delay.  PME will provide a limited amount of financing to assist the business in meeting its employee commitments until such time as a liquidator has been able to determine the distribution of the company's assets.


Background and PME Outlook


As set out in the last results announcement (dated 28 September 2011), trading for both Sasatel and Broadband Company has been challenging given the overall economic environment and the competitive landscape in which these businesses operate.  It was hoped that a strategic realignment of each of the businesses, undertaken earlier in the year, would have achieved more positive results but this has not been the case.  However, the Board believes that the measures being implemented in Uganda and the pursuit of the prospects of a sale in Tanzania, as recommended by the Investment Manager, are the best ways to preserve value for the shareholders of PME.


The Board is pleased to note that good progress continues to be made in relation to its investment in Sheltam Holdings (Pty) Limited ("Sheltam") and the 12 locomotives held through PME Locomotives (Mauritius) Limited. Operational performance has materially improved over the last four months and Sheltam is looking at a number of opportunities to deploy unutilised locomotive capacity.



For further information please contact:


PME Infrastructure

Managers Limited

Brian Smith

+27 11 560 8658

Smith & Williamson Corporate Finance Limited

Azhic Basirov / Siobhan Sergeant

+44 20 7131 4000

Oriel Securities Limited

Joe Winkley / Neil Winward

+44 20 7710 7600

College Hill

Mike Davies / Tony Friend

+44 20 7457 2020



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