Hans on the Softbank thread posted this a little while back:
Softbank Corp. has agreed to subscribe for 1,152.5m new shares in Cheung Wah (0648.HK, $1.33) at $0.18 per share. The company's aim is to become the largest shareholder in the company, with a 61.1% interest. The issued price of the new shares represents a 14% discount to the pro-forma NAV of Cheung Wah of $0.21 per share. The original controlling shareholder, the Yu family, will then see their stake diluted from 39.7% to 15.5%. The future of Cheung Wah was initially a little unclear after the shift in control. However, the company's name is now to be changed to Softbank Investment International (Strategic). This could reflect Softbank's intention to use the listing vehicle to expand its Internet-related business, probably in greater China. Softbank Corp., listed on the Tokyo Stock Exchange, currently possesses a market capitalisation of 8,400b yen (HK$620b).
Over the last few years the company has been focusing its investments towards Internet-related ventures. It has so far invested in 120 Internet and computer-related ventures in the US, Europe and Asia. The major investments include 23% of Yahoo! Inc., and 25% of E*TRADE Group Inc. Its present business in Hong Kong merely involves managing a direct investment fund of US$50m, for investment in various industries in China, including Hong Kong. Cheung Wah is therefore likely to become Softbank's investment vehicle in this area. |
