ITC and a group of entertainment stars are to reap substantial profits by disposing of their stakes in entertainment Web-site operator Star East Information Technology (SEIT), less than two months after its establishment.
In a joint announcement by ITC and Star East Holdings, it was revealed ITC was expected to record a HK$25 million exceptional gain for the year to the end of next March after its sale of a 7 per cent SEIT stake to Pacific Century CyberWorks and a 6.3 per stake to Japan-based Hikari Tsushin.
The group of artists, including Jackie Chan Kong-sang, Alan Tam Wing-lun and Natalis Chan Pak-cheung, will also reap an undisclosed profit from their sale of a 3 per cent SEIT stake to CyberWorks and 3.7 per cent to Internet service distributor Hikari.
Hikari has exercised a call option which boosted its stake in SEIT from 10 to 18 per cent.
Separately, CyberWorks will subscribe to new shares equivalent to 10 per cent of the enlarged share capital of SEIT for US$10.56 million, which would value SEIT, operator of stareastnet.com at HK$818.4 million.
ITC is to grant CyberWorks a two-year call option to buy 5 per cent of SEIT from it at a 15 per cent discount to the initial offer price of a possible Nasdaq listing.