[00-5-04] Spike Forms Net Venture With Pacific Century CyberWorks
By Adam Creed, Newsbytes.
SINGAPORE,
04 May 2000, 3:36 AM CST
Spike Forms Net Venture With Pacific Century CyberWorks 05/04/00 SINGAPORE, 2000 MAY 4 (NB) -- By Adam Creed, Newsbytes. Australian Web development group Spike Networks Ltd has inked an agreement to join up with Hong Kong broadband Internet company Pacific Century CyberWorks to offer regional companies Web site and e-commerce development services.
The two companies will set up the Spike CyberWorks venture, which will be 70 percent-owned by Spike and 30 percent-owned by Pacific Century CyberWorks, in Hong Kong, Australia and Japan.
Existing Spike offices in Australia and Japan will become Spike CyberWorks operations.
The deal also calls for Pacific Century CyberWorks to take a 5 percent in Australian Stock Exchange-listed Spike, with options to increase this stake to 10 percent, and take its interest in Spike CyberWorks up to 50 percent.
Pacific Century CyberWorks has been looking for partnerships around the region, and is in talks with Australia's dominant carrier Telstra Corp. over possible joint ventures.
In February, the company succeeded in its bid for Cable & Wireless HKT - a US$35.9 billion cash-and-share merger that is currently being completed and approved.
Spike was one of many Internet companies hit hard in the recent drop in value of listed technology stocks. The company reported a net loss of A$12.8 million ($7.83 million) for the six months to December 1999, and Chris O'Hanlon, the company's chief executive officer also recently resigned.
Spike shares closed Thursday up 8 cents to A$1.24 ($0.73). In March, Spike shares were being traded at more than twice this amount.
Exchange Rate: $1 = A$1.70
Reported By Newsbytes.com, newsbytes.com
03:36 CST
Reposted 13:52 CST
(20000504/WIRES ASIA, ONLINE/)
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