Pearl Oriental Holdings is capitalising on the Government's heightened interest in high technology by taking control of a local data communication and information technology (IT) company for $36.75 million.
The property and financial services investment holding firm is buying a 55 per cent stake, plus shareholders' loans, in Hong Kong-Data Communication.
The investment is Pearl Oriental's second hi-tech investment following the acquisition last year of a trunk radio firm.
Shareholders in the IT company, Stanley Cheung Tak-kwai, Tam Kwok-pui and Tu Hsin-ming, will sell part of their stakes to Pearl but retain a combined 45 per cent.
The purchase - subject to regulatory approval - will be conducted through Pearl Oriental Telecom & Technology, indirectly held by Pearl Oriental.
To cover the deal, Pearl will issue 150 million new shares in the company, worth $2.75 million, and take on loans of Hong Kong-Data worth $34 million.
The issue price of 24.5 cents a share represents a premium of 94.4 per cent to the stock's last traded close of 12.6 cents.
