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Technology Stocks : Softbank Investment International (HK0648) -- Ignore unavailable to you. Want to Upgrade?

To: Archie Goodwin who wrote (46)	2/13/2000 8:14:00 PM
From: Yamakita	Respond to of 615

Here's an article I found in the South China Morning Post, slightly old (Jan 20). I would like to track down Goto-san and interview him, but I'm going to be in Australia for the next few weeks. I'll try to do so when I get back. ~~~~ Cheung Wah surges on Softbank stake buy DENISE TSANG and KAI PETER YU Softbank Corp's move to take over Cheung Wah Development to make it the Japan-based company's investment flagship in Asia bolstered the textile distributor's share price more than seven-fold yesterday. "We have 120 to 150 companies in the United States, 100 in Japan and 20 in Asia," said Junichi Goto, a director at Softbank group who will head Cheung Wah as president. "Now we are going to increase the Asian portion." Securing listed Cheung Wah would mark the first step of an expansion plan by Softbank into the region's fledgling Internet market. Mr Goto said that if the Asian companies Softbank invested in had synergies with Internet firms already within its portfolio, they would be merged or their businesses combined. Cheung Wah shares surged to HK$9.80 on resumption of trading yesterday. Trading in Cheung Wah had been suspended since January 7 because of an exceptional share-price gain, after the counter closed at HK$1.33. The world's largest investor in Internet companies said yesterday it would subscribe to 1.15 billion new Cheung Wah shares - or 61.5 per cent of the company's enlarged share capital - for HK$207.5 million. Cheung Wah's share price rise yesterday would mean a paper gain of about HK$11 billion for Softbank if the deal holds. Softbank has agreed to pay 18 cents per share for the Cheung Wah stake, an 86.46 per cent discount to the January 6 closing price. Company officials said the transaction would be completed by March. The share rise is reminiscent of similar increases in Richard Li Tzar-kai's information technology flagship Pacific Century CyberWorks and in Golden Power International Holdings, an electronic firm being taken over by Japan-based Hikari Tsushin and CyberWorks. Steve Cheng Ka-wah, a sales director at Tanrich Securities, said: "In terms of management, Softbank has a longer and more successful history in Internet investments. "This is despite the fact that Cheung Wah, CyberWorks and Golden Power are equally speculative." Softbank was founded by president Masayoshi Son in 1981. Its market capitalisation has jumped to about US$100 billion from US$20 billion a year ago. Softbank has key shareholdings in leading Internet companies Yahoo!, on-line broker E*Trade and ZDNet. Skandia fund manager Richard Mak said that Hong Kong would be ideal for Softbank to use as a base for investing in the mainland and around the region. On completion of the deal, Cheung Wah will be renamed Softbank Investment International (Strategic), and five Softbank representatives will join its board. Mr Son indicated earlier this week that Softbank intended to invest in about 100 "China specific or Asian specific" Internet firms. Mr Goto said Softbank would aim to transplant to Asia successful Internet business models in its US joint ventures. He cited wholly owned subsidiary Yahoo! Japan - the Japanese version of Yahoo! developed by Softbank - as an example. Softbank spent US$10 million on developing Yahoo! Japan based on the American concept. Yahoo! Japan is now worth US$10 billion in market capitalisation. "We will also do this here," Mr Goto said at a meeting with institutional investors in Hong Kong. Mr Goto said in cases where it was unfavourable for the local firm to adopt the US business model, it would develop indigenous concepts and recruit local talent. "That is why we want to become a local company," he said. "In some cases the successful model cannot be transplanted [to the Asia-Pacific], because there are many countries that need a specific business model. "But there are a lot of opportunities to do it the Asian way," Mr Goto added. He cited the mainland, Japan, South Korea and Taiwan as having the most opportunities for development of the Internet sector. Asked whether there was "too much venture capital chasing too few Internet companies" in Asia-Pacific, Mr Goto replied: "It is much better than in Japan. There is much more venture capital in Japan chasing Internet companies."

To: Archie Goodwin who wrote (46)	2/13/2000 8:23:00 PM
From: Yamakita	Read Replies (2) \| Respond to of 615

This is interesting, dug up on Stock Exchange of Hong Kong page. sehk.com.hk CHEUNG WAH DEV<0648> - Announcement The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement SOFTBANK INVESTMENT (INTERNATIONAL) HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) CHEUNG WAH DEVELOPMENT COMPANY LIMITED (Incorporated in Hong Kong under the Companies Ordinance) Joint Announcement As a result of the Lunar New Year holiday, the date of despatch of the circular in respect of the Subscription will be delayed to on or before 21st February, 2000. Cheung Wah Development Company Limited (the 'Company') and Softbank Investment (International) Holdings Limited ('SBIIH') have jointly announced on 19th January, 2000 (the 'Announcement') that they had entered into a conditional subscription agreement in relation to the subscription by SBIIH of 1,152,500,000 new shares of HK$0.10 each in the capital of the Company (the 'Subscription'). Upon completion of the Subscription, SBIIH will be obliged to make a general offer for all the shares in the Company not already owned by SBIIH or parties acting in concert with it as required under the Hong Kong Code on Takeovers and Mergers (the 'Code'). HSBC Investment Bank Asia Limited, on behalf of SBIIH, has made an application to the Executive of the Securities & Futures Commission (the 'SFC') for a whitewash waiver from the obligation to make the general offer under the Code. Pursuant to the Code, a circular (the 'Circular') in respect of the Subscription and the whitewash waiver must be despatched to shareholders of the Company on or before 9th February, 2000, being the 21st day after the date of the Announcement. Due to the Lunar New Year holiday, despatch of the Circular will be delayed. An application has been made to the Executive of the SFC to request for an extension of the despatch date of the Circular to 21st February, 2000. By Order of the Board of SOFTBANK INVESTMENT (INTERNATIONAL) HOLDINGS LIMITED Junichi Goto Director By Order of the Board of CHEUNG WAH DEVELOPMENT COMPANY LIMITED Yu Kam Kee, Lawrence Chairman Hong Kong, 8th February, 2000 The directors of the Company and SBIIH jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statements in this announcement misleading.