PAC CENT CYBER<1186> - Announcement
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the whole or any part of the contents of this announcement.
PACIFIC CENTURY CYBERWORKS LIMITED
(Incorporated in Hong Kong with limited liability)
Announcement
Acquisition of shares in Pacific Century CyberWorks Limited
by Mr. Yasumitsu Shigeta, President of Hikari Tsushin, Inc. and
Acquisition of shares in Hikari Tsushin, Inc. by Pacific Century
Group Holdings Limited
Pacific Century Group Holdings Limited (``PCGH'') has entered into
an agreement with Mr. Yasumitsu Shigeta (``Mr. Shigeta'') to
purchase certain shares in Hikari Tsushin, Inc. (``Hikari'') from
Mr. Shigeta and to sell certain shares in Pacific Century CyberWorks
Limited (``PCCW'' or the ``Company'') owned by PCGH to Mr. Shigeta.
The board of Pacific Century CyberWorks Limited (the ``Board'') is
pleased to announce that the Company has been advised by PCGH, a
company beneficially owned by Mr. Richard Li Tzar Kai, Chairman of
PCCW, that on 11th February, 2000, PCGH has entered into an
agreement with Mr. Shigeta, President and controlling shareholder
of Hikari, a leading IT company in Japan and one of Asia's largest
listed companies with market capitalization in excess of Yen 6,595
billion (US$60.73 billion) as at 10th February, 2000.
Under the terms of the agreement between PCGH and Mr. Shigeta, PCGH
has agreed to sell 332,526,000 shares in PCCW (``the PCCW Shares'')
representing approximately 3.5% of the existing issued share
capital of the Company and equivalent to approximately
US$1,000,000,000 based on the closing price of PCCW on 10th February,
2000 of HK$23.40 per share. Mr. Shigeta currently does not hold any
shares in PCCW. PCGH has also agreed to purchase 510,200 shares in
Hikari (``Hikari Shares'') from Mr. Shigeta, representing
approximately 1.65% of the existing issued share capital of Hikari
and equivalent to approximately US$1,000,000,000 based on the
closing price of Hikari quoted by the Tokyo Stock Exchange on 10th
February, 2000 of Yen 213,000 per share (the ``Share Transaction'').
Mr. Shigeta and Mr. Li have expressed their intention to hold the
shares hereby received as long term investments.
After the above share transaction, the number of PCCW Shares
directly held by PCGH will decrease from 435,484,000 (representing
about 4.6% of the issued share capital of PCCW) to 102,958,000
(representing about 1.1% of the issued share capital of PCCW).
The companies and their chairmen share a belief and a common
responsibility concerning the importance of expanding the
beneficial use of the Internet throughout Asia. Moreover, the two
companies share similarities and complementary strengths. Both
companies place equal value on operations and investments to
further their core activities, and both companies are represented
by management and staff who are highly entrepreneurial, young and
dynamic, and aggressive in seizing new opportunities. In Japan,
Hikari's reputation places it solidly at the forefront of the
nation's IT revolution, as one of the leading incubators of internet
companies and as the largest telephony and wireless mobile
communications corporation. In Asia beyond Japan, PCCW has equally
established itself as the preeminent channel for prudent
institutional investment in the emerging Internet economy, the
preferred Internet partner for international IT brands and the
early leader in the broadband revolution now underway globally and
throughout Asia. It is the Board's view that this is a historic event
in the evolution of PCCW.
The Board also believes that the Share Transaction will further
strengthen the strategic relationship between PCCW and Hikari. PCCW
is proposing to become a strategic shareholder holding
approximately 20% of Hikari's intended flagship in Hong Kong,
Golden Power International Limited, to be renamed Hikari Tsushin
International Limited (``Golden Power'') as announced in a joint
announcement by Hikari, Golden Power and PCCW dated 28th December,
1999. The Board believes that the Share Transaction will
substantially raise the profile of Hikari and PCCW as two of the
leading internet businesses in Asia. Furthermore, the Board
believes the Share Transaction will provide crucial impetus to PCCW,
and its operating arm Pacific Convergence Corporation (``PCC''),
in identification of business opportunities in Japan, one of the
three strategic markets for the Company including China and India.
The management of PCCW and Hikari intend to explore further co-
operation opportunities between the two groups in Asia and Japan.
The Board is of the view that the addition of Mr. Shigeta as a
strategic shareholder of PCCW will further strengthen the
international profile of PCCW and is complementary to the existing
list of strategic shareholders and partners of PCCW and PCC which
include CMGI, Inc., Intel Pacific, Inc., SoftNet Systems, Inc. and
Trans World International Inc..
By order of the Board
Helen Chu
Company Secretary
Hong Kong, 12th February, 2000
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