Spike Says Goodbye PCCW, Hello Techpacific.com
By Luisa Bustos
Hong Kong financial and technology services company Techpacific.com will invest $11 million in Spike CyberWorks in return for a controlling stake in the services business, Spike Networks announced today.
The agreement effectively ends Spike's joint venture with Richard Li's Pacific Century CyberWorks (PCCW), announced in June.
Under the terms of the agreement, the 30 per cent shareholding in Spike CyberWorks owned by PCCW will be transferred to Techpacific.com. For this part of the transaction, PCCW will receive new shares of Techpacific.com and maintain an indirect interest in Spike CyberWorks, the statement said.
Techpacific will increase its shareholding in Spike CyberWorks to 51 per cent by subscribing for newly issued shares. In the original agreement with Spike, PCCW had the option of increasing its 30 per cent holding to 50 per cent in two years.
Spike and Techpacific.com signed the heads of agreement last Friday. The investment is much needed for the internet company, which has struggled since announcing a restructure in June to focus on its services line of business.
In a statement released this morning, Spike's executive chairman, John McGuigan, said the investment from Techpacific.com is "an extremely positive step" for the expansion of Spike CyberWorks in Asia.
Through the agreement, Techpacific.com, which provides financial and technology services to technology businesses in Asia, plans to expand its e-services arm. Johnny Chan, Techpacific.com's CEO, said Spike CyberWorks' strong presence in Australia and Japan will be important in allowing his company to gain access to a region-wide client base.
Trading in Spike Networks resumed on the ASX today.
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