ChinaTel Group, Inc., a company offering high speed wireless broadband and telecommunications infrastructure engineering and construction services, announced that it has closed a transaction with private investment group Olotoa Investments for the sale of 49 percent of ChinaTel’s Class A common stock for $300 million. The amount will be payable commencing March 9, 2009 through September 9, 2010 in such amounts and at such times as designated by the board of directors of ChinaTel.
“Olotoa Investments wishes to diversify its portfolio by becoming a financial partner in the high growth regions of the telecommunications sector,” commented Paul V. Olotoa, CEO of Olotoa Investments. “As a leader in telecom infrastructure in emerging markets, we believe ChinaTel is the best opportunity for us to participate in the exciting world of Next Generation broadband technology on a global level.”
“We are also excited about ChinaTel’s deployment and operations possibilities in India, the third largest telecom market in the world, where we are currently in negotiations with representatives to duplicate ChinaTel’s vision in one of the fastest growing industries in India,” Olotoa added.
“Olotoa’s support is a demonstration of confidence in ChinaTel’s business plan and the immediate opportunities in front of us as we deploy broadband projects in China and Latin America,” stated Colin Tay, President of ChinaTel.