To: Hunter Vann who wrote (2 ) 9/29/1998 4:15:00 PM From: Harry_Behemoth Read Replies (1) | Respond to of 40
Tuesday September 29, 3:38 pm Eastern Time Company Press Release ERAWEST Inc. Announces It Signed a Binding Letter of Intent to Acquire United Africa Telecom -UAT- CLEARWATER, Fla.--(BUSINESS WIRE)--Sept. 29, 1998--ERAWEST Inc. (ERAW) (OTC:ERAW - news), an international provider of telecommunications and Internet services, announced today the signing of a binding Letter of Intent to acquire United Africa Telecom (UAT). United Africa Telecom is in the business of providing local, long distance gateways and wireless telephone service in hard to reach, developing countries, such as Guinea, Sierra Leone, Liberia, etc. This acquisition of United African Telecom should bring operating cash flow to ERAWEST, Inc. of $9,125,000 (USD) in the first year. This would equate to approximately $ .90 in earnings per share. In year two, operating cash flow should be $19,870,000 (USD), (this does not include additional countries that should be up and running) this equates to $ 1.90 per share. In the next three to ten years we expect cash flow from the operations to grow at a rate of 15% per annum. Based on research by the investment banking firm of Goldman Sachs, which last year identified four companies providing wireless Telecom services in third world countries, the UAT valuation of licenses presently held is $ 78,330,000 (USD). The companies evaluated by Goldman Sachs were analyzed as to enterprise value, average gross domestic product per capita (GDP) of the countries served and the resulting value, when the enterprise value was divided by the total population within the countries served by each company (the ''PER POP'' valuation). United Africa Telecom's leadership team has extensive experience through AT&T in planning, deploying and operating facility based and wireless telecom systems in both domestic and international markets. Much of those efforts have been focused on developing countries where the potential market place is large and expanding the telecom infrastructure is crucial to the success and growth of their economies. Robert Hinson, President of ERAW stated, ''This acquisition of United Africa Telecom is a continuation of ERAW's growth plan. This new acquisition expands ERAW into a new continent that has tremendous potential and further extends ERAW's capability to cover the globe. We still have additional mergers and acquistions for ERAW in the near future.'' About ERAW ERAWest is a multinational telecommunications company providing local, long distance, telephone services, telecommunications software and internet access and web publishing in many countries.