Softbank executive slams Richard Li - updated
REUTERS
Updated at 5.30pm:
Softbank Corp's chief financial officer launched a blistering tirade against Pacific Century CyberWorks on Friday, ruling out any future co-operation with the company.
Yoshitaka Kitao aimed his remarks at CyberWorks executive chairman Richard Li Tzar-kai at a news briefing on Softbank's new Hong Kong-listed arm.
Mr Kitao said Mr Li was interested only in making money for himself.
"Making money is one thing, I want to do that too. But more important for us is to do something good for society," Mr Kitao said, adding that Softbank and CyberWorks had conflicting philosophies.
"My style is totally different from Richard Li. I will not have any co-operation or have future ties with him."
A visibly annoyed Mr Kitao also made clear his feelings for rival Hikari Tsushin's chief executive Yasumitsu Shigeta, who also sits on the Softbank board of directors.
"What he's [Mr Shigeta] doing is basically imitating everything that Softbank is doing, particularly after he joined the board. I hate what he's doing," he told a stunned but amused press corps.
"I strongly urge him to get out of our board."
CyberWorks and Hikari have close business dealings and cross shareholdings in each other.
While Mr Kitao did not give detailed reasons for his unflattering remarks about Hikari and CyberWorks, he said Softbank's philosophy was "totally different".
Softbank's approach entails striking joint ventures with non-Web based or "off-line" companies, providing them with infrastructure to go on-line and possibly helping them list.
"We want to make companies change to become profitable ... In total, our venture funds are over US$2.3 billion in Asia," Mr Kitao said.
Of that amount, US$1.3 billion is for Japan, which the company said would be invested in 1,000 Japanese companies.
Shares of both Softbank and Hikari fell sharply on Friday as institutional investors reaped profits on Internet shares. Hikari shares fell 24.8 per cent to 94,000 yen (about HK$6,885), while Softbank's fell 13 per cent to 99,200 yen.
Softbank planted its flag in Hong Kong in January when it bought control of sleepy dyestuffs and garment maker Cheung Wah Development for US$26.6 million in order to gain its stock market listing.
The deal was approved in a shareholders' meeting on Friday and Cheung Wah will be renamed Softbank Investment International (Strategic) Ltd (Softbank Strategic).
Softbank Strategic's dyestuffs business would be made into a business-to-business (B2B) Internet business and a new investment department would be set up in the company, Mr Kitao said.
The new department would "secure strategic partners in the Asia Pacific" and seek to "bring off-line businesses on-line", he said.
"In Hong Kong, we have a lot of choices. Through Hong Kong, I would like to penetrate into mainland China, which is obviously a huge market. Its Internet user population will be the world's number one," Mr Kitao said.
Softbank Strategic will compete for investment s with Hikari's own Hong Kong-listed unit. Hikari bought a 51 per cent stake in Golden Power International Holdings in December. CyberWorks took a 20 per cent stake in the company.
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