Pink sheets: PTEL.pk
LONDON, June 4 /CNW/ - Petel Incorporated today announces the agreement
to acquire a further company into the Petel Group. The new addition to the
Group will provide Petel Incorporated with the vehicle to build a global,
non-adult, broadband broadcast television corporation.
The acquisition company is listed on a UK stock exchange and will not be
identified until it has completed a required reorganisation. Funding of the
acquisition will be via a like-for-like share exchange between the two
companies. The transaction will result in a strike price of GBP0.75 (US$1.50)
for the acquired company shares. The acquired company will issue over
138 million shares to existing Petel Incorporated shareholders, resulting in a
dividend stock issuance valued in excess of US$207M.
It is anticipated that the company will be identified week commencing
11th June 2007, the proposed record date.
- The acquired company will become a subsidiary of Petel Incorporated.
- The company will be acquired into the group via a like-for-like,
1-for-1 share exchange.
- All existing Petel Incorporated shareholders at date of record will
receive one share in the newly acquired company for each Petel
Incorporated share they own, with a strike price of GBP0.75
- Further details and the identity of the acquisition will be published
week commencing 11th June 2007.
Petel Incorporated CEO David Morton comments "We are very pleased to have
successfully concluded the negotiations for this acquisition. The new addition
adds massive value to our operation, both in terms of product and resource,
and will open significant new markets to the Company. In addition, it is
gratifying to be able to deliver a valuable dividend to our shareholders and
Petel Incorporated's five year forecasts and business plan are included
in the Corporate Overview, published on the Investor Relations page at
For more information please visit www.petel.co.uk Or email
This news release contains forward-looking statements that are subject to
certain risks and uncertainties that may cause actual results to differ
materially from those projected on the basis of such forward-looking
statements. The words "estimate," "project," "intends," "expects," "believes,"
and similar expressions are intended to identify forward-looking statements.
Such forward-looking statements are made based on management's beliefs, as
well as assumptions made by, and information currently available to,
management pursuant to the "safe-harbour" provisions of the Private Securities
Litigation Reform Act of 1995. For a more complete description of these and
other risk factors that may affect the future performance of Petel, Inc. see
"Risk Factors" in the Company's Annual Report on Form 10-KSB and its other
filings with the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only
as of the date made and the Company undertakes no obligation to disclose any
revision to these forward-looking statements to reflect events or
circumstances after the date made or to reflect the occurrence of
For further information:
For further information: Nik Ellwood, +44-(0)845-0344-097