News

April 29, 2008

GCM Diversifies ... Again

By Rob Davies

GCM started life with the ambition of developing the massive Phulbari thermal coal property in Bangladesh. However, without going over that interesting old ground yet again, the project fell victim to local political issues, and so GCM decided to go to other parts of the world to develop energy resources.

It’s done that very successfully in South Africa, where Coal of Africa, a company of which GCM owns 20 million shares, has been doing rather well. That stake is now worth £27 million. Bearing in mind that GCM has £11 million in cash, a £3.7 million shareholding in Regent Pacific, the Hong-listed, Chinese-focussed vehicle controlled by Jim Mellon and Steve Dattels, and a £4.6 million investment in a Bangladesh telecommunications company, the current market capitalisation of £51 million implies...