To All:
GST Global Telecommunications Inc. signs agreement in principal with
Occidental de Telecommunications, S.A. DE C.V. to create Bestel
VANCOUVER, B.C.--(BUSINESS WIRE)--Sept. 30, 1996-- GST Global
Telecommunications Inc., ("Global") has signed an agreement with Occidental de
Telecommunications, S.A. DE C.V. "Odetel" to create Bestel.
The agreement calls for ownership of Bestel to be divided 51 percent
"Odetel" and 49 percent "Global". Odetel (owned by Grupo Varo) and Global via
Bestel will bring the benefits of competitive choice and new technology to the
citizens of Mexico through the aggressive deployment of basic and advanced
telecommunications services.
Bestel will initially construct, own and operate a fiber optic
telecommunications network in Mexico. The network will consist of
approximately 2200 kilometres of fiber deployment connecting 12 cities
Mexico, including Mexico City, Guadalajara and Monterrey.
Assets of Bestel include a concession from the Mexican government to build,
operate and exploit a long distance telecommunications network in Mexico; and
Right of Way (Easements) agreements allowing the installation of the network
along the right of way of the national railroad company. Upon completion of
the Bestel network approximately 80 percent of the population of Mexico may be
accessed from the network.
Management of Bestel will consist of a Board of Directors the majority to be
nominated by Odetel and the minority to be nominated by Global. Major
decisions will require supermajority quorum and voting. Bestel's management
committee will consist of four members, two nominated by each Global and
Odetel.
GST Global Telecommunications will issue up to 3 million shares of common
stock to GST Telecommunications Inc. for prior work on the Mexican
opportunities.
The transaction is subject to the execution of mutually acceptable
definitive agreements and all required regulatory approvals.
Canadian Programming Concepts Ltd. has received Vancouver Stock Exchange
approval for its change of name to GST Global Telecommunications Inc. GST
Global Telecommunications Inc. will be traded on the Vancouver Stock Exchange
under the symbol GGB.
CONTACT: Canadian Programming Concepts Ltd.
Rob Blankstein, 604/688-0553, 1-800-667-4366 or
Earl Kamsky, 360/254-4700 |
