Deals to help change Culturecom's focus
Comic-book publisher Culturecom Holdings is planning to dispose of loss-making newspaper publishing arm Tin Tin Daily Publication Development to its major shareholder and to buy a Chinese software firm.
Taken together, the deals are intended to reposition Culturecom as an information-technology company.
Culturecom said it planned to acquire a 51 per cent interest in QCode Information Technology, which produces Chinese application software.
Culturecom will issue $36.97 million in new shares at 43.5 cents a share, a 12.12 per cent discount to yesterday's closing price, to acquire QCode.
Culturecom shares soared 10 per cent to 49.5 cents yesterday.
Culturecom will end up issuing 85 million new shares to the vendor, Shing Fai Resources, or 4.4 per cent of Culturecom's enlarged share capital.
