CMGI's PCCW all over the place in Hong Kong... high of 20.20, low 17.20 today. Now trading at 18.30, down a little. Here's the extremely interesting news:
Hikari Tsushin, Inc. Takes Controlling Stake in Golden Power International Holdings Limited
TUESDAY, DECEMBER 28 1999 6:51 PM EST
HONG KONG, Dec 28, 1999 (BUSINESS WIRE) -- Japan incorporated, Tokyo-listed Hikari Tsushin, Inc. (stock code: 9435 JP), together with Hong Kong-listed Pacific Century CyberWorks Limited ("PCCW") (stock code: 1186) and Hong Kong-listed Golden Power International Holdings Limited ("Golden Power")(stock code: 603) have reached an agreement whereby Hikari Tsushin, Inc. and PCCW will acquire shares in Golden Power.
Golden Power, will then become the listed vehicle of Hikari Tsushin, Inc. in Hong Kong and will be the holding company for the future investments of Hikari Tsushin, Inc. in the Asia Pacific region excluding Japan. Hikari Tsushin, Inc. has no plans to inject any of its existing assets or businesses into Golden Power.
Upon completion of the subscription agreement entered into by Hikari Tsushin, Inc., Golden Power and PCCW on 28th December, 1999, Hikari Tsushin, Inc., will become the controlling shareholder of Golden Power owning 51 percent of the issued share capital on a fully diluted basis, whilst PCCW will acquire a 20 percent stake, acting as a strategic partner.
Golden Power will be renamed Hikari Tsushin International Limited. The new company will continue its existing business in the manufacturing and distribution of batteries and electronic products. The directors of Hikari Tsushin, Inc. aim to expand the current business of Golden Power and conduct a range of Internet and Internet-related activities.
Hikari Tsushin, Inc., with market capitalization of approximately 6,404 billion Yen (approximately US$62.7 billion) as at 28th December, 1999, is one of the top sales companies in long distance and overseas telephony market and the wireless mobile communications market in Japan.
As at 28th December, 1999, PCCW has a market capitalization of about US$20.9 billion (approximately HK$162 billion).
Under the subscription agreement, Hikari Tsushin, Inc. and PCCW will subscribe for 595,100,000 new shares and 233,400,000 new shares respectively of Golden Power at HK$0.90 each; representing a discount of about 45 percent of the average closing price of HK$1.63 per share over the 20 trading days up to and including 20th December, 1999. Hikari Tsushin, Inc. will pay a total consideration of approximately HK$535.6 million and PCCW will pay approximately HK$210.1 million upon completion of the subscription agreement.
Hikari Tsushin, Inc. would be required to make an unconditional general offer for all the issued shares of Golden Power not already owned or agreed to be acquired by Hikari Tsushin, Inc. or parties acting in concert with it upon completion of the subscription agreement. The subscription price of HK$0.90 also represents a discount of about 3.7 percent to the fully diluted consolidated net tangible asset value per share of about HK$0.935.
Hikari Tsushin, Inc. will also subscribe for a convertible note at a consideration of approximately HK$93.4 million. If exercised in full, at the initial conversion price of HK$0.90 per share would result in the issue of 103,800,000 new shares, representing approximately 8.9 percent of the fully diluted issued share capital of Golden Power upon completion.
Hikari Tsushin, Inc. intends to nominate five directors, PCCW to nominate two directors to the board of directors of Golden Power and two existing directors of Golden Power will remain on the board. Hikari Tsushin, Inc. and PCCW are co-investors in a number of Internet investments.
"We believe that both Pacific Century CyberWorks and Hikari Tsushin, Inc. share a similar business strategy and will mutually benefit from forming a strong business alliance in exploring and developing business opportunities in the dynamic while enormous technology and media field." said Masahide Saito, Executive Managing Director of Hikari Tsushin, Inc.
NOTES TO EDITORS:
About Hikari Tsushin, Inc. Hikari Tsushin, Inc. is a company incorporated in Japan with limited liability and the shares of which are listed on the Tokyo Stock Exchange. Hikari Tsushin, Inc. was founded in 1988 to sell and lease office equipment and telephones.
Since then, Hikari Tsushin, Inc. has expanded into the sale of telecommunications products, the business of local and international telecommunications service subscription agent, provision of information and communication services through satellite, telemarketing business, and a wide range of Internet related services.
Hikari Tsushin, Inc. is the second largest Internet company and the tenth largest company in Japan in terms of market capitalization. Moreover, Hikari Tsushin, Inc. also operates the largest retail network, HIT SHOPs, for mobile phones and other services in Japan. There are 1,920 such shops in Japan as of November 1999.
Seeking to maximize synergetic effect with existing businesses, Hikari Tsushin, Inc. was also selected as a number one `Hottest of the Hot' IT companies in its 1999 InfoTech 100 issue of Business week; US magazine last month. Visit our home page at www.hikari.co.jp.
About Pacific Century CyberWorks Pacific Century CyberWorks Limited ("PCCW") is the Hong Kong-listed technology flagship of the Pacific Century Group (www.pcg-group.com).
PCCW aims to be one of the largest Internet groups in Asia and globally, bringing together the best talent, the best technology and the best companies under one umbrella. PCCW is comprised of three main businesses: Pacific Convergence Corporation, CyberWorksVentures and the Cyber-Port project.
Based on the current market capital of US$20.9 billion (approximately HK$162 billion) as at 28th December, 1999, PCCW is the largest Internet company in Asia outside Japan.
Pacific Convergence Corporation ("PCC") aims to become the leading provider of broadband Internet services in Asia via its satellite network serving more than 130 million connected cable households. PCC's NOW (Network of the World) will offer the world's first fully converged service providing interactive digital video viewing and web access.
PCCW, through its CyberWorksVentures arm ("CWV"), enters into and invests in local and international information technology and Internet businesses, and has invested in more than 17 Asian and Western Internet companies. CWV venture investments have grown from an initial US$58 million to a collective value of US$1.3 billion currently.
The Pacific Century Group is developing with the Government of Hong Kong the approximately US$1.6 billion Cyber-Port project (www.cyber-port.com), a strategic cluster of IT and services companies at the one location.
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
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CONTACT: Hikari Tsushin, Inc.
c/o OCCASIONS Corporate & Financial Communications Ltd.
Serena Tsoi/Wendy Chan, Tel: 2801-5333 Fax: 2801-5323
9123 9933/9495-3313 (after office hours)
or
Pacific Century CyberWorks Ltd (Media Inquiries -
outside of the U.S.)
Joan Wagner/Rebecca Leung, Tel: 852 2514 8883/2514 8647
Fax: 852 2509 0127; 9128 1155 (after office hours)
pr@pcg-group.com
or
Pacific Century CyberWorks Ltd. (U.S. Media Inquiries)
c/o Fleishman-Hillard, Inc.
Nina Bondarook, Tel: 415-356-1030/415-356-1000
Fax: 415-356-1098; Mobile: 650-533-3367
bondaron@fleishman.com
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