CyberWorks might set up subsidiary in S'pore
By Fran Foo and Michelle Tan
Thursday, August 3 2000
SINGAPORE--Richard Li's Pacific Century CyberWorks Ltd, one of Asia's biggest Internet investment companies, might establish a subsidiary in the island state, sources said.
When contacted, CyberWorks spokesperson Joan Wagner did not discount the possibility (of a subsidiary here) but said that more details would be provided in two weeks.
"An important part of our merger is to expand regionally, and we will be looking at all possibilities for doing so...either through joint ventures or (by setting up) subsidiaries," Wagner said in a phone interview with Singapore.CNET.com.
"Some of the JVs and subsidiaries set up regionally could end up with their HQs in Spore," Wagner said, adding that nothing is final. "Further information would be provided "shortly after" the merger (between Cable & Wireless HKT and CyberWorks) is finalized on August 17".
TF Chong, a Singapore-based telecoms analyst welcomed the news. "Needless to say, all eyes will be on (Richard) Li".
If the Singapore subsidiary is indeed established, Chong says it would be a boost to local Internet start-ups.
"The fact of the matter is that if Richard Li has a stake in your company, then you're quite set...this is (of course) provided you deliver the goods," Chong said, citing Horizon.com as an example.
CyberWorks' 5 percent or S$5 million stake in the Singapore-based broadband player buyoed its Initial Public Offering (IPO) when Horizon made its debut on the Singapore Exchange in January. Horizon closed its first trading day by a whopping 124 percent increase or S$1.88 to close at S$4.22.
CyberWorks also holds equity in other local companies such as SilkRoute Holdings and MediaRing.com.
Yesterday, the Hong Kong court approved the merger of C&W HKT and CyberWorks, clearing the final hurdle in entrepreneur Richard Li's five-month quest to take over Hong Kong's dominant phone company, Bloomberg reported.
The merger will take effect on August 17 after C&W HKT's last trading day, August 8. The following day, CyberWorks will join the benchmark Hang Seng Index.
Cable & Wireless plc agreed in February to sell control of C&W HKT to CyberWorks for as much as US$38.1 billion. C&W is trying to exit consumer businesses and focus instead on providing voice, data and online services to corporate customers.
C&W HKT is a 129-year-old company which owns more than one phone line for every two Hong Kong people.
CyberWorks has not announced the management of the new company. HKT Chief Executive Linus Cheung said he expects 95 percent of HKT staff to remain with the combined company.
C&W HKT closed at HK$18.70, up HK$0.20 while CyberWorks ended the day at HK$17.20, a HK$0.45 increase.
By Fran Foo and Michelle Tan
Thursday, August 3 2000
SINGAPORE--Richard Li's Pacific Century CyberWorks Ltd, one of Asia's biggest Internet investment companies, might establish a subsidiary in the island state, sources said.
When contacted, CyberWorks spokesperson Joan Wagner did not discount the possibility (of a subsidiary here) but said that more details would be provided in two weeks.
"An important part of our merger is to expand regionally, and we will be looking at all possibilities for doing so...either through joint ventures or (by setting up) subsidiaries," Wagner said in a phone interview with Singapore.CNET.com.
"Some of the JVs and subsidiaries set up regionally could end up with their HQs in Spore," Wagner said, adding that nothing is final. "Further information would be provided "shortly after" the merger (between Cable & Wireless HKT and CyberWorks) is finalized on August 17".
TF Chong, a Singapore-based telecoms analyst welcomed the news. "Needless to say, all eyes will be on (Richard) Li".
If the Singapore subsidiary is indeed established, Chong says it would be a boost to local Internet start-ups.
"The fact of the matter is that if Richard Li has a stake in your company, then you're quite set...this is (of course) provided you deliver the goods," Chong said, citing Horizon.com as an example.
CyberWorks' 5 percent or S$5 million stake in the Singapore-based broadband player buyoed its Initial Public Offering (IPO) when Horizon made its debut on the Singapore Exchange in January. Horizon closed its first trading day by a whopping 124 percent increase or S$1.88 to close at S$4.22.
CyberWorks also holds equity in other local companies such as SilkRoute Holdings and MediaRing.com.
Yesterday, the Hong Kong court approved the merger of C&W HKT and CyberWorks, clearing the final hurdle in entrepreneur Richard Li's five-month quest to take over Hong Kong's dominant phone company, Bloomberg reported.
The merger will take effect on August 17 after C&W HKT's last trading day, August 8. The following day, CyberWorks will join the benchmark Hang Seng Index.
Cable & Wireless plc agreed in February to sell control of C&W HKT to CyberWorks for as much as US$38.1 billion. C&W is trying to exit consumer businesses and focus instead on providing voice, data and online services to corporate customers.
C&W HKT is a 129-year-old company which owns more than one phone line for every two Hong Kong people.
CyberWorks has not announced the management of the new company. HKT Chief Executive Linus Cheung said he expects 95 percent of HKT staff to remain with the combined company.
C&W HKT closed at HK$18.70, up HK$0.20 while CyberWorks ended the day at HK$17.20, a HK$0.45 increase.
