Cheung Wah (648)
January 20,2000
Softbank will acquire 1.15 billion new shares at 18 cents each for a
total consideration of $207.5 million. The transaction will be settled
by cash.
The acquisition share price is at a deep 86.5% discount to the last
trading price of $1.33 on 6 January 2000. Rumours had obviously
been around since last week when the price started its flight.
The shell company Cheung Wah is a money loser. It booked red
figures for 4 years in a row, losing a total of $130 million. After the
transaction, the existing business will be continued and the fixed
assets will not be sold.
SOFTBANK manages a portfolio of internet-related ventures. Its
stakes in Yahoo! and E*TRADE expanded its capitalization and let
the company to make further acquisitions. It is the hottest potato in
the Japanese market.
According to the announcement, the company has ¡§no specific
plan or target identified at present¡¨. To be renamed as Softbank
Investment International, Cheung Wah will be the listing arm of
SOFTBANK in Hong Kong.