PCCW <1186.HK>, PCI <0065.HK> forms ICP venture
HONG KONG, April 28 (Reuters) - Pacific Century CyberWorks Ltd (PCCW) and Pacific Century Insurance Holdings Ltd (PCI) said on Friday they had agreed to form a joint venture with U.S. based Morningstar Inc to provide investment information for Internet sites in Asia, except Japan and South Korea. PCCW and its sister company PCI would contribute a total of US$12.02 million for 50.1 percent in the venture company, called Perfect Rhyme Ltd, they said in a joint statement.
They entered into the agreement through a newly formed company, Advance Internet Visions Ltd, which is 70 percent owned by PCCW and 30 percent held by PCI, it said. Morningstar, based in Illinois, would subscribe US$11.98 million worth of shares in Perfect Rhyme or 49.9 percent of the venture company.
Morningstar would grant Perfect Rhyme an exclusive licence for the use of its financial information products and a licence to act as Morningstar's sales agent in Asia except Japan and South Korea to satisfy part of the consideration, it said. The U.S. company would also contribute US$6.6 million to the operating budget of Perfect Rhyme over three years. Both PCCW and PCI are subsidiaries of Singapore listed Pacific Century Regional Development Ltd , controlled by Hong Kong entrepreneur Richard Li. PCCW shares rose HK$0.60 or 4.46 percent to HK$14.05 on Friday morning following an overnight surge on U.S. tech-dominated Nasdaq Composite index <.IXIC>.
PCI shares also gained HK$0.05 to HK$3.15.