CyberWorks to Book $73.8 Mln Profit on Internet-Related Investment Gains
By Biddy Chan
Hong Kong, March 20 (Bloomberg) -- Pacific Century CyberWorks Ltd., Asia's third largest Internet investment company, said it will book a $73.8 million gain from its Internet-related investments for 1999.
The Hong Kong-based company said it wasn't its accounting
policy to book unrealized gains from its securities investments, most of which it holds for long-term strategic purposes. However, there are some it holds for capital gains, it said.
CyberWorks said its portfolio now comprises more than 40
Internet-related companies, including 14 that are publicly traded.
Among the listed investments, four companies accounted for
the majority of the portfolio's total market value as of March 16, when CyberWorks shares were last traded on the Stock Exchange of Hong Kong. The company asked that its shares be suspended Friday pending this statement to clarify press reports on a $1 billion paper profit.
CyberWorks said it spent a total of $522 million buying stakes in CMGI Inc., SoftNet Systems Inc., Golden Power International Holdings Ltd. and tom.com Ltd. in the past year. As of March 16, those investments were worth $1.55 billion, giving it a paper profit of $1.03 billion.
Of its other investments in listed Internet companies, CyberWorks said they were worth $29.8 million as of March 16, compared with an acquisition cost of $12.6 million.
CyberWorks is scheduled to announce its 1999 earnings later
today. The stock lost 10 percent last week, falling to HK$19.95 amid a sell-off in Asian technology stocks. The shares will resume trading today.
bloomberg.com
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