HK's iLink Says Internet Downturn Helps Its Business
Updated: Thursday, February 22, 2001 06:06 AM ET Email this article to a friend!
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HONG KONG (Dow Jones)--Data center operator iLink Holdings Ltd. said Thursday the fallout from the Internet frenzy is actually helping its business as dotcoms laying off staff and trimming budgets outsource more of their operations.
"When companies cut costs, they usually outsource their IT (information technology) departments. It actually helps us," said Billy Tam, iLink's founder and chief executive.
iLink, which is 40.84% owned by Pacific Century CyberWorks Ltd. (PCW, news, msgs), provides server hosting, facilities management, Internet connectivity and network management services. The company is seeking a listing on Hong Kong's Growth Enterprise Market and plans to raise up to HK$140.8 million.
PCCW, which invested HK$70 million for an 80% stake in iLink in 1999, holds about 40.84% now, after selling a 17% stake, and private placements to Dell Ventures and Henderson Investment Ltd. (H.HIN, news, msgs) last year.
The loss-making company derives about 40% of its revenue from PCCW and PCCW-related companies.
Dell Ventures and Henderson hold 6% and 11.5% in iLink respectively.
DotCom Pacific Ventures, partly owned by Tam, has a 30.4% stake in iLink. HSBC International Trustee owns 11.3% on behalf of an employee option plan.
iLink, which doesn't have a data center operator license in China, plans to open four data centers in China in the next two years through joint ventures with mainland partners.
It will set up a data center in Beijing with China Netcom and a third party this year. It will also form a joint venture with Shanghai Hongkou and Shanghai New Epoch, which is 40% owned by Shanghai Telecom, to set up a data center in Shanghai.
It also plans to go to Shenzhen later this year and Guangzhou in 2002.
Powerbase, a PCCW subsidiary, also operates a 300,000 square foot data center in Hong Kong and two data centers in China.
-By Sonia Tsang, Dow Jones Newswires; 852-2802-7002; sonia.tsang@dowjones.com
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