ChinaTel Group has recently received their first stock purchase agreements, resulting in an investment of $640 million. The investment represents 48 percent of outstanding shares and increases ChinaTel’s overall value to 1.33 billion.
By March 1, the company will have $241 million and will receive the rest by June 1. The money will aid in expanding its wireless broadband networks worldwide and will use WiMax technology to get wireless broadband internet to remote areas of Asia and other continents.
“With this infusion of capital, we can pursue our global expansion plans, and accelerate the deployment of the Chinacomm network in the Peoples Republic of China (PRC). We expect to complete build-out of the first twelve PRC cities by June, 2011,” ChinaTel’s CEO, George Alvarez, stated. “When completed, the Chinacomm network will be one of the largest wireless broadband networks in the world.”
Excel Era Limited and Isaac Organization invested in the project. Excel’s investment total is $480 million and the company will acquire 159.6 million shares of ChinaTel A common stock. Isaac will contribute $160 million, netting 53.2 million shares.
The Isaac Organization has served as an adviser to ChinaTel and has developed a portfolio of assets valued at over $5 billion dollars, including interests in Asia. ChinaTel appointed Tony Isaac, representing Isaac Organization and Charles Wang, CEO of Excel to its board of directors.
Photo Courtesy of Steve Webel via Flickr
