Asia Online, Cheung Wah in Talks Over Internet Partnership
By Mike Yee
Asia Online, Cheung Wah in Talks Over Internet Partnership
Hong Kong, Feb. 15 (Bloomberg) -- Asia Online, Ltd., a Hong
Kong Internet service provider controlled by Softbank Corp., said it may partner with Cheung Wah Development Co., Softbank's Hong Kong listed vehicle, to invest in Internet businesses.
``We have had a lot of discussions, but nothing solid' has
been agreed upon, said Kevin Randolph, Asia Online's president.
Last month Softbank, Japan's biggest Internet investor,
agreed to buy a 61 percent stake in Cheung Wah for HK$207.5
million ($26.7 million), gaining a publicly traded firm which it can use to raise funds for investments in China.
Asia Online also said it will complete a new round of fund
raising for business expansion soon. Randolph said the new funds would be more than the amount raised in the past, though no financial details were provided.
He also declined to comment on whether the company would seek a listing on the U.S. Nasdaq stock market.
Last year the company raised $35 million from a group of
investors including J.P. Morgan, Pequot Private Equity and GE Capital Finance.
The company, which derives most of its revenue from providing Internet access services, has tried to diversify its Web business by investing in 14 different operations across Asia and in the U.S.
It just acquired a Web design company in Malaysia and a Web
hosting company in Hong Kong. It also said it was closing a deal with a partner for possible expansion in the China market.
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