Here's an article I found in the South China Morning Post, slightly old (Jan 20). I would like to track down Goto-san and interview him, but I'm going to be in Australia for the next few weeks. I'll try to do so when I get back.
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Cheung Wah surges on Softbank stake buy
DENISE TSANG and KAI PETER YU
Softbank Corp's move to take over Cheung Wah Development to make it the Japan-based company's investment flagship in Asia bolstered the textile distributor's share price more than seven-fold yesterday.
"We have 120 to 150 companies in the United States, 100 in Japan and 20 in Asia," said Junichi Goto, a director at Softbank group who will head Cheung Wah as president.
"Now we are going to increase the Asian portion."
Securing listed Cheung Wah would mark the first step of an expansion plan by Softbank into the region's fledgling Internet market.
Mr Goto said that if the Asian companies Softbank invested in had synergies with Internet firms already within its portfolio, they would be merged or their businesses combined.
Cheung Wah shares surged to HK$9.80 on resumption of trading yesterday.
Trading in Cheung Wah had been suspended since January 7 because of an exceptional share-price gain, after the counter closed at HK$1.33.
The world's largest investor in Internet companies said yesterday it would subscribe to 1.15 billion new Cheung Wah shares - or 61.5 per cent of the company's enlarged share capital - for HK$207.5 million.
Cheung Wah's share price rise yesterday would mean a paper gain of about HK$11 billion for Softbank if the deal holds.
Softbank has agreed to pay 18 cents per share for the Cheung Wah stake, an 86.46 per cent discount to the January 6 closing price.
Company officials said the transaction would be completed by March.
The share rise is reminiscent of similar increases in Richard Li Tzar-kai's information technology flagship Pacific Century CyberWorks and in Golden Power International Holdings, an electronic firm being taken over by Japan-based Hikari Tsushin and CyberWorks.
Steve Cheng Ka-wah, a sales director at Tanrich Securities, said: "In terms of management, Softbank has a longer and more successful history in Internet investments.
"This is despite the fact that Cheung Wah, CyberWorks and Golden Power are equally speculative."
Softbank was founded by president Masayoshi Son in 1981.
Its market capitalisation has jumped to about US$100 billion from US$20 billion a year ago.
Softbank has key shareholdings in leading Internet companies Yahoo!, on-line broker E*Trade and ZDNet.
Skandia fund manager Richard Mak said that Hong Kong would be ideal for Softbank to use as a base for investing in the mainland and around the region.
On completion of the deal, Cheung Wah will be renamed Softbank Investment International (Strategic), and five Softbank representatives will join its board.
Mr Son indicated earlier this week that Softbank intended to invest in about 100 "China specific or Asian specific" Internet firms.
Mr Goto said Softbank would aim to transplant to Asia successful Internet business models in its US joint ventures.
He cited wholly owned subsidiary Yahoo! Japan - the Japanese version of Yahoo! developed by Softbank - as an example.
Softbank spent US$10 million on developing Yahoo! Japan based on the American concept.
Yahoo! Japan is now worth US$10 billion in market capitalisation.
"We will also do this here," Mr Goto said at a meeting with institutional investors in Hong Kong.
Mr Goto said in cases where it was unfavourable for the local firm to adopt the US business model, it would develop indigenous concepts and recruit local talent.
"That is why we want to become a local company," he said.
"In some cases the successful model cannot be transplanted [to the Asia-Pacific], because there are many countries that need a specific business model.
"But there are a lot of opportunities to do it the Asian way," Mr Goto added.
He cited the mainland, Japan, South Korea and Taiwan as having the most opportunities for development of the Internet sector.
Asked whether there was "too much venture capital chasing too few Internet companies" in Asia-Pacific, Mr Goto replied: "It is much better than in Japan. There is much more venture capital in Japan chasing Internet companies."
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