Fresh off the press....
(Applies to: PCCLF)
Hikari Tsushin, Inc. Takes Controlling Stake in Golden Power
International Holdings Limited
HONG KONG, Dec 28, 1999 (BUSINESS WIRE) -- Japan incorporated,
Tokyo-listed Hikari Tsushin, Inc. (stock code: 9435 JP), together with
Hong Kong-listed Pacific Century CyberWorks Limited ("PCCW") (stock
code: 1186) and Hong Kong-listed Golden Power International Holdings
Limited ("Golden Power")(stock code: 603) have reached an agreement
whereby Hikari Tsushin, Inc. and PCCW will acquire shares in Golden
Power.
Golden Power, will then become the listed vehicle of Hikari Tsushin,
Inc. in Hong Kong and will be the holding company for the future
investments of Hikari Tsushin, Inc. in the Asia Pacific region
excluding Japan. Hikari Tsushin, Inc. has no plans to inject any of its
existing assets or businesses into Golden Power.
Upon completion of the subscription agreement entered into by Hikari
Tsushin, Inc., Golden Power and PCCW on 28th December, 1999, Hikari
Tsushin, Inc., will become the controlling shareholder of Golden Power
owning 51 percent of the issued share capital on a fully diluted basis,
whilst PCCW will acquire a 20 percent stake, acting as a strategic
partner.
Golden Power will be renamed Hikari Tsushin International Limited. The
new company will continue its existing business in the manufacturing
and distribution of batteries and electronic products. The directors of
Hikari Tsushin, Inc. aim to expand the current business of Golden Power
and conduct a range of Internet and Internet-related activities.
Hikari Tsushin, Inc., with market capitalization of approximately 6,404
billion Yen (approximately US$62.7 billion) as at 28th December, 1999,
is one of the top sales companies in long distance and overseas
telephony market and the wireless mobile communications market in
Japan.
As at 28th December, 1999, PCCW has a market capitalization of about
US$20.9 billion (approximately HK$162 billion).
Under the subscription agreement, Hikari Tsushin, Inc. and PCCW will
subscribe for 595,100,000 new shares and 233,400,000 new shares
respectively of Golden Power at HK$0.90 each; representing a discount
of about 45 percent of the average closing price of HK$1.63 per share
over the 20 trading days up to and including 20th December, 1999.
Hikari Tsushin, Inc. will pay a total consideration of approximately
HK$535.6 million and PCCW will pay approximately HK$210.1 million upon
completion of the subscription agreement.
Hikari Tsushin, Inc. would be required to make an unconditional general
offer for all the issued shares of Golden Power not already owned or
agreed to be acquired by Hikari Tsushin, Inc. or parties acting in
concert with it upon completion of the subscription agreement. The
subscription price of HK$0.90 also represents a discount of about 3.7
percent to the fully diluted consolidated net tangible asset value per
share of about HK$0.935.
Hikari Tsushin, Inc. will also subscribe for a convertible note at a
consideration of approximately HK$93.4 million. If exercised in full,
at the initial conversion price of HK$0.90 per share would result in
the issue of 103,800,000 new shares, representing approximately 8.9
percent of the fully diluted issued share capital of Golden Power upon
completion.
Hikari Tsushin, Inc. intends to nominate five directors, PCCW to
nominate two directors to the board of directors of Golden Power and
two existing directors of Golden Power will remain on the board. Hikari
Tsushin, Inc. and PCCW are co-investors in a number of Internet
investments.
"We believe that both Pacific Century CyberWorks and Hikari Tsushin,
Inc. share a similar business strategy and will mutually benefit from
forming a strong business alliance in exploring and developing business
opportunities in the dynamic while enormous technology and media
field." said Masahide Saito, Executive Managing Director of Hikari
Tsushin, Inc.
NOTES TO EDITORS:
About Hikari Tsushin, Inc.
Hikari Tsushin, Inc. is a company incorporated in Japan with limited
liability and the shares of which are listed on the Tokyo Stock
Exchange. Hikari Tsushin, Inc. was founded in 1988 to sell and lease
office equipment and telephones.
Since then, Hikari Tsushin, Inc. has expanded into the sale of
telecommunications products, the business of local and international
telecommunications service subscription agent, provision of information
and communication services through satellite, telemarketing business,
and a wide range of Internet related services.
Hikari Tsushin, Inc. is the second largest Internet company and the
tenth largest company in Japan in terms of market capitalization.
Moreover, Hikari Tsushin, Inc. also operates the largest retail
network, HIT SHOPs, for mobile phones and other services in Japan.
There are 1,920 such shops in Japan as of November 1999.
Seeking to maximize synergetic effect with existing businesses, Hikari
Tsushin, Inc. was also selected as a number one 'Hottest of the Hot' IT
companies in its 1999 InfoTech 100 issue of Business week; US magazine
last month. Visit our home page at www.hikari.co.jp.
About Pacific Century CyberWorks
Pacific Century CyberWorks Limited ("PCCW") is the Hong Kong-listed
technology flagship of the Pacific Century Group (www.pcg-group.com).
PCCW aims to be one of the largest Internet groups in Asia and
globally, bringing together the best talent, the best technology and
the best companies under one umbrella. PCCW is comprised of three main
businesses: Pacific Convergence Corporation, CyberWorksVentures and the
Cyber-Port project.
Based on the current market capital of US$20.9 billion (approximately
HK$162 billion) as at 28th December, 1999, PCCW is the largest Internet
company in Asia outside Japan.
Pacific Convergence Corporation ("PCC") aims to become the leading
provider of broadband Internet services in Asia via its satellite
network serving more than 130 million connected cable households. PCC's
NOW (Network of the World) will offer the world's first fully converged
service providing interactive digital video viewing and web access.
PCCW, through its CyberWorksVentures arm ("CWV"), enters into and
invests in local and international information technology and Internet
businesses, and has invested in more than 17 Asian and Western Internet
companies. CWV venture investments have grown from an initial US$58
million to a collective value of US$1.3 billion currently.
The Pacific Century Group is developing with the Government of Hong
Kong the approximately US$1.6 billion Cyber-Port project
(www.cyber-port.com), a strategic cluster of IT and services companies
at the one location.
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