China Internet company to buy stakes in four firms

August 9, 2000
Web posted at: 10:41 a.m. HKT (0241 GMT)

HONG KONG (Reuters) -- Hong Kong-based investment holding group China Internet Global Alliance Ltd (CIGA) said on Tuesday it would buy stakes in four regional companies for HK$533 million ($68 million) as part of its continuing diversification.

The company said in a statement it would buy stakes in Cook Islands-based Kerry Group Ltd, Malaysia's Kuok Brothers Sdn Berhad, Singapore's Kuok Ltd and Hong Kong's Ban Thong Co Ltd from Jersey-incorporated Paysoda Ltd.

In terms of the deal, CIGA would pay half of the purchase price in cash and the rest would be settled by transferring 266.5 million of its shares in China CyberPort Ltd (CCP) to Paysoda at HK$1 (13 cents) each.

As a result, CIGA's total holding in CCP would be reduced to 47.39 percent from 68.95 percent, the company said.

"The acquisitions represent an opportunity for the group to diversify strategically into news and publishing media, hotel chain ownership and management, warehousing and logistics services, property and other businesses," CIGA said.

It said the disposal of its stake in CCP was in line with its plan to focus on information technology and e-commerce related services in greater China.

CIGA said it would buy 41.78 million Kerry shares at HK$9 ($1.15) each to acquire 2.71 percent of Kerry. "The group...intends to increase its shareholding in Kerry up to 20 percent. Presently, no agreement has been reached in respect of this proposed increase," it said.

It would also buy 5.13 million Kuok Brothers shares at 3.375 ringgits (89 cents) per share, representing about 1.03 percent of Kuok Brothers.

CIGA said its purchase of 8.49 million Kuok (Singapore) shares at S$3.15 ($1.82) per share would give about 4.25 percent of the company, while its purchase of one million Ban Thong shares at HK$2.25 (29 cents) each would result in it acquiring a 2.0 percent stake.

Kerry Group Ltd is an investment holding company with interests in the manufacturing and marketing of food and beverages, property investment, commodities trading, club and hotel management, and publishing.

It holds stakes in Asian hotelier Shangri-La Asia Ltd and Hong Kong newspaper publisher South China Morning Post (Holding) Ltd.

Kuok Brothers' principal activity is investment holding in companies involved in flour milling, management services, property development, hotel business and transportation.

Kuok (Singapore) has interests in shipping, warehousing, logistics services, hotel business, property development and related activities, and manufacturing and processing, while Ban Thong engages in investment holding in companies engaged in warehousing, property investment, processing of sheep casings and related products.

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