Telstra, Cyberworks Advance Internet Joint Venture, Paper Says
By Jason Gale
Melbourne, Feb. 2 (Bloomberg) -- Telstra Corp. has avoided any last-minute hitches in its joint venture agreement with Hong Kong-based Pacific Century CyberWorks Ltd. and is set to transfer billions of dollars worth of assets to its new Bermuda base next week, the Australian said.
All three joint ventures between Telstra, CyberWorks and its Hong Kong telecommunications subsidiary may be completed by Feb. 7, after their initial announcement in April. An announcement is likely Feb. 8, the newspaper said, without citing sources.
The alliances involve the establishment of an Internet protocol backbone company (IPBC), which will carry data traffic via undersea cables, a regional wireless company (RWC), and the establishment of a property company to build Internet-wired buildings for commercial tenants. IPBS and RWC are to be based in Hong Kong, though, for tax reasons, the nominal headquarters will be located in Bermuda, the report said.
On Jan. 16, CyberWorks, Richard Li's Internet and telephone services venture, said it won approval from shareholders to sell telecom assets and bonds to Telstra, Australia's No.1 phone company, raising $3.35 billion it will use to repay debt due next month.
(The Australian 2/2, p. 19)
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