Hong Kong’s rapidly-growing new kid on the IT block, Pacific Century CyberWorks Ltd, has raised HK$3.87bn ($496m) in the largest share placement in Hong Kong this year to fund the purchase of a 23% stake in Nasdaq-listed SoftNet Systems Inc and other unnamed purchases.
SoftNet announced that CyberWorks had agreed to pay $128.75m for five million shares at a price of $25.75 per share. CyberWorks and SoftNet also agreed to form a joint venture, Pacific Century SoftNet, which will market products and services to cable-television operators serving 110 million Asian households. SoftNet said the companies will collaborate on broadband internet and satellite projects.
Just three weeks ago, CyberWorks formed an alliance with US-based internet investment company CMGI in a HK$2.71bn ($327m) share-swap arrangement aimed at tapping the internet business in Asia.
Cyberworks chairman Richard Li said: We are looking into more acquisitions of a strategic nature, which could help strengthen our internet broadband project, he said. We will work closely with any acquisitions, and we expect them to bring direct and immediate help to our business.
