CyberWorks, CMGI to Form CMGI Asia, a 50-50 Internet Venture
Hong Kong, Jan. 25 (Bloomberg) -- Pacific Century CyberWorks
Ltd., Asia's largest Internet company outside Japan, is raising
HK$2.97 billion ($384 million) to fund an Internet venture with
CMGI Inc. of the U.S., according to BNP Paribas Peregrine
CyberWorks will fund its side of the 50-50 venture by selling
new shares to its controlling shareholders, Pacific Century Group
and Pacific Century Regional Development, said BNP Prime
Peregrine, which is handling the sale. The two companies will
raise the money by first selling 188 million CyberWorks shares to
institutional investors at HK$15.80 each.
The venture, to be named CMGI Asia, will hold and manage
CMGI's 18 investment units in the region. CyberWorks bought a 3.5
percent stake in CMGI in September through a $350 million share
swap. CMGI now owns 5.5 percent of the Hong Kong company.
More details are expected to be announced at a 3:45 p.m. news
conference in Hong Kong. CyberWorks Chairman Richard Li is
expected to attend the news conference.
Singapore-listed Pacific Century Regional Developments Ltd.,
which holds 49 percent of CyberWorks, asked that its shares be
suspended from trading from 2 p.m. ``pending an important price-
sensitive announcement'' by CyberWorks.
CyberWorks shares rose 0.6 percent to HK$16.65 in morning
trade. Pacific Century Regional Development surged 7.2 percent to
S$20.9. The stock rose 22 percent since last Thursday.
CyberWorks said last week it plans to buy a minority stake in
Tom.com, the Web portal owned by Cheung Kong (Holdings) Ltd. and
Hutchison Whampoa Ltd., and an announcement would be made in one
to two weeks' time.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.