TO ALL - Foreign Investment in Alphanet
PT INDOSAT MAKES STRATEGIC INVESTMENT IN ALPHANET TELECOM INC.
Stock Symbol: FAX (TSE)
TORONTO, Aug. 28 /CNW/ - AlphaNet Telecom Inc.
("AlphaNet") today announced that it has entered into a
definitive investment agreement with Perusahaan Perseroan
(Persero) PT Indonesian Satellite Corporation Tbk. ("PT
Indosat"), the primary provider of international
telecommunications services in Indonesia. Under the terms of
the agreement, PT Indosat will invest CDN $35 million in
AlphaNet in the form of a convertible debenture and its
President and CEO, Mr. Tjahjono Soerjodibroto, will join
AlphaNet's board of directors, alongside an impressive roster
of senior business executives with significant
telecommunications industry expertise. The investment is
subject to the usual securities regulatory approvals and is
expected to close on or before September 15, 1997.
"In line with PT Indosat's vision to explore
telecommunications business opportunities in international
markets, we decided to join forces with AlphaNet which will
provide a global end-to-end international telecommunications
network using proprietary technology", said Mr. Soerjodibroto.
"This technology, coupled with AlphaNet's experienced
management team and its unique relationship with one of the
world's largest private data network operator, is what has
drawn us to this strategic investment", added Soerjodibroto.
"PT Indosat's investment in our company is a strong
endorsement of AlphaNet's business strategy by a leading
international telecommunications services provider" said Andre
LeBel, AlphaNet's President and Chief Executive. "Our
organizations share a common belief regarding the impact that
leading-edge technologies will have in shaping the future of
the industry. Our complementary business plans provide us with
opportunities to leverage our respective strengths to their
fullest potential" added LeBel.
The debenture has a 5-year term and bears interest at the
Bank of Canada prime lending rate as adjusted annually. It is
convertible into two million common shares of AlphaNet (at CDN
$17.50 per share) at any time during the 5-year term at the
option of the holder. Mandatory conversion at the same
conversion price will occur at any time after the first 18
months following the date of issue under certain predetermined
market and operating conditions, or at maturity. In a separate
transaction with AlphaNet Technology Corporation, the private
holding company of AlphaNet's founders, PT Indosat is
acquiring 1,750,000 common shares of AlphaNet Telecom Inc.
Assuming immediate conversion of the debenture, PT Indosat
would hold 27.6% of AlphaNet Telecom Inc.'s common shares on a
fully diluted basis. This transaction is also expected to
close on or before September 15, 1997.
Celebrating its 30th anniversary this year, PT Indosat
provides international telecommunications services to the
people making up the fourth largest market in the world,
linking it to 252 countries and destinations worldwide. PT
Indosat's common shares are traded on the Jakarta and New York
Stock Exchanges under the symbols ISAT and IIT respectively.
Additional information can be found at its website at
ptindosat.com.
AlphaNet, headquartered in Toronto, is a communications
provider specializing in the development of digital
technologies and services for the telecommunications and
hospitality industries. Its Telecommunications division is a
cutting-edge carriers' carrier, offering low-cost, high
quality international long distance services and is expected
to be in commercial service soon. Its Hospitality Systems
division is a provider of innovative telephony services for
the hospitality industry. Additional information can be found
at its website at alphanet.net.
%SEDAR: 00003200E
/For further information: please contact: AlphaNet Telecom
Inc., Claude Samson, Executive Vice-President, Chief Financial
Officer & Chief Operating Officer, Tel: (416) 413-4404, Fax:
(416) 413-4424, e-mail: claude.samson(at)alphanet.net; PT
Indosat, Budi Prasetyo, General Manager, Investor Relations,
Tel: (62-21) 384-2770, Fax: (62-21) 380-4045, e-mail:
bp(at)indosat.net.id |
