Star Telecom International Holdings - ultimately controlled by Singapore businessman Oei Hong Leong - has cashed in on the recent surge in the share price of its subsidiary Tricom Holdings with a $369 million share placement in the unit.
Tricom shares have gained more than 1,000 per cent since Richard Li Tzar-kai's Pacific Century Group a fortnight ago said it would take over the company in a deal worth $2.46 billion.
However, Mr Li is understood to be unhappy about the fund-raising exercise, fearing it might blemish his image.
The share placement, conducted by BNP Prime Peregrine yesterday, meant Star Telecom sold 17 per cent of Tricom's issued share capital for more than what its entire 74.99 per cent stake in the firm was worth two weeks ago.
It also meant a substantial profit which brokers said Star Telecom could not have expected prior to the takeover bid as the company's investment cost in Tricom was only 22 cents per share.
Ahead of the Pacific Century move, Tricom had never traded above 40 cents since its listing in 1994.
