ALTECH - INVESTMENT BY ALTECH IN EWG
Allied Technologies Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/020415/06)
Share code: ALT ISIN: ZAE000015251
(`Altech`)
Econet Wireless Global Limited
(Incorporated in Botswana)
(Registration number 2002/1140)
(`EWG`)
INVESTMENT BY ALTECH IN EWG (50% PLUS ONE SHARE)
Further to the announcement published on 25 November 2004, regarding the above,
shareholders of Altech are now advised as follows:
1. The agreement relating to the indirect acquisition by EWG of the 14% interest
in Mascom Wireless Botswana (Proprietary) Limited `Mascom` held by Econet
Wireless Holdings Limited (`Econet Zimbabwe`) has now been implemented.
Accordingly, that 14% interest in Mascom now vests in the EWG group.
2. The arrangements whereby a Botswana investment consortium would exchange its
majority interests in two special purpose vehicle companies (`spv`s`), having a
combined shareholding of 20% in Mascom, for preferred ordinary shares in a new
spv in which EWG holds 100% of the ordinary shares, has also been implemented.
3. Accordingly, taking into account an existing shareholding of 6% in Mascom,
EWG now has an effective 40% equity interest in Mascom. The Botswana consortium
now has a minority preferred ordinary share interest in the relevant spv, the
financial participation derived from which will be directly dependent on the
underlying future growth of Mascom.
4. The proposed investment by EWG in Telikom PNG Limited (`Telikom PNG`), in
terms of contracts signed during July 2004, was not approved by the government
of Papua New Guinea, apparently due to a political decision to terminate the
relevant privatisation process. EWG has taken legal advice and intends to
reserve its rights in regard to this matter.
5. In the meantime, the funds earmarked for the Telikom PNG transaction being
US$30 million are held in a Rand denominated South African bank account in the
name of EWG, the entire Rand interest receipts from which accrue to Altech. This
arrangement is pending redeployment of this amount, either for investment in
Telikom PNG or for another investment to be determined by the board of EWG and
to be approved by the South African Reserve Bank`s Exchange Control Department.
6. Arbitration proceedings relating to EWG`s pre-emptive rights arising from its
shareholding in Econet Wireless Nigeria Limited (`Econet Nigeria`, recently
renamed Vee Networks Limited, trading as V-Mobile) are expected to commence on
31 January 2005. The outcome of a related arbitration proceeding concerning the
technical service agreement arrangements with Econet Nigeria is also expected
shortly.
The integration of the EWG group with Altech is progressing well. Shareholders
of Altech will be advised of any further material developments regarding this
investment.
Johannesburg
25 January 2005
ALTRON
A member of the Altron Group
Proudly South African
Date: 25/01/2005 05:56:59 PM
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