CyberWorks, CMGI to Form CMGI Asia, a 50-50 Internet Venture
Hong Kong, Jan. 25 (Bloomberg) -- Pacific Century CyberWorks Ltd., Asia's largest Internet company outside Japan, is raising HK$2.97 billion ($384 million) to fund an Internet venture with CMGI Inc. of the U.S., according to BNP Paribas Peregrine Securities.
CyberWorks will fund its side of the 50-50 venture by selling new shares to its controlling shareholders, Pacific Century Group and Pacific Century Regional Development, said BNP Prime Peregrine, which is handling the sale. The two companies will raise the money by first selling 188 million CyberWorks shares to institutional investors at HK$15.80 each.
The venture, to be named CMGI Asia, will hold and manage CMGI's 18 investment units in the region. CyberWorks bought a 3.5 percent stake in CMGI in September through a $350 million share swap. CMGI now owns 5.5 percent of the Hong Kong company.
More details are expected to be announced at a 3:45 p.m. news conference in Hong Kong. CyberWorks Chairman Richard Li is expected to attend the news conference.
Singapore-listed Pacific Century Regional Developments Ltd., which holds 49 percent of CyberWorks, asked that its shares be suspended from trading from 2 p.m. ``pending an important price- sensitive announcement'' by CyberWorks.
CyberWorks shares rose 0.6 percent to HK$16.65 in morning trade. Pacific Century Regional Development surged 7.2 percent to S$20.9. The stock rose 22 percent since last Thursday.
CyberWorks said last week it plans to buy a minority stake in Tom.com, the Web portal owned by Cheung Kong (Holdings) Ltd. and Hutchison Whampoa Ltd., and an announcement would be made in one to two weeks' time. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. |