Dawning stake to cost $16m
Cheuk Nang Technologies (Holdings) has raised its investment in information technology by acquiring a 55.8 per cent stake in mainland state-owned firm Dawning Computer for HK$16 million.
The purchase will be partly satisfied by issuing 55 million Cheuk Nang new shares at 20 HK cents each, or worth HK$11 million.
The issue price represents a 32 per cent premium to its 15.2 HK cents Friday close.
Cheuk Nang will also pay HK$5 million in cash for the stake.
Dawning Computer is under the National Research Centre for Intelligent Computing Systems (NCIC), which is the national research centre of the State Science & Technology Commission and the Chinese Academy of Science.
The joint venture will focus on software development, distribute its computer products and expand into e-commerce in future. NCIC, a super server Netbox 2000, is Dawning's main project.