What do we have? A DOT COM? Softbank arm in US$125m shuffle
KAI PETER YU
Softbank International Investment Strategic, formerly Cheung Wah Development, is planning to swap shares worth US$125 million and to form joint ventures with Chinadotcom and two other Asian companies, according to sources.
Precise details of the share-swaps are unclear but the partnerships are believed to be intended to help Softbank Strategic identify investment opportunities in the region.
The joint ventures are expected to focus on seeking non-Internet companies with potential to become successful on-line businesses, especially in the retail and manufacturing sectors.
The Hong Kong-listed arm of Japan-based Softbank would swap $25 million worth of shares with Nasdaq-listed Chinadotcom, the sources said.
Softbank Strategic will also enter a 50-50 joint venture with Chinadotcom to form a technology and business consultancy that would advise Softbank's Japanese investor companies seeking an entrance to the Greater China market.
The consultancy would also target Hong Kong companies hoping to move into Japan, the sources said.
Softbank Strategic has already agreed to swap about $20 million worth of shares with Lai Sun Hotels, which is to be renamed eSun.com, and focus on developing Internet content.
In the Philippines, Softbank Strategic would swap $50 million worth of shares with PhilWeb, the only Internet listed company in the country, sources said.
An Internet-investment joint venture is also to be established.
PhilWeb would hold a 50 per cent stake in the venture, while Softbank and United States insurance giant American International Group would each take a 25 per cent holding, the sources said.
In Malaysia, Softbank Strategic planned to ally with Digi Swisscom through a $50 million share-swap, the sources said.
Digi is the third-largest mobile-telephone operator in the country. It is owned by tycoon Vincent Tan, who also controls Berjaya Group.
Softbank Strategic also intends to establish, then take a 10 or 20 per cent stake in, a $200 million fund for investing in non-Internet-related companies with the potential to move on-line.
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