PCCW <1186.HK> to take 20 pct in Golden Power deal
HONG KONG, Dec 29 (Reuters) - Pacific Century CyberWorks (PCCW) said it would acquire a 20 percent stake in electronic parts maker Golden Power International Holdings Ltd <0603.HK> for about HK$210.1 million.
In a joint statement on Tuesday with Japan's Hikari Tsushin <9435.T>, which would take a 51 percent Golden Power stake, PCCW said it would subscribe for 233.4 million new Golden Power shares at HK$0.90 each. The subscription price represented a 45 percent discount to the average closing price of HK$1.63 per Golden Power share over the 20 trading days up to and including December 20, it said. Trading of Golden Power shares was suspended in the morning on December 20 pending an announcement.
The stock jumped HK$0.525 or 15 percent to HK$4.025 on the day piror to the suspension.
The subscription agreement was expected to be completed in January, PCCW added. The Hong Kong-based technology flagship of Pacific Century Group, with a market capitalisation of about HK$162 billion, said it intended to nominate two directors to the Golden Power board. PCCW and Hikari Tsushin, a rapidly expanding sales agency for cell phone services, said Golden Power would become the listed vehicle of Hikari Tsushin in Hong Kong. PCCW shares surged HK$3.55 or 22.26 percent to finish at HK$19.50 on Tuesday after reaching a record high of HK$20.10.
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