Japan-based Hikari Tsushin is teaming up with Pacific Century CyberWorks in a HK$839.06 million takeover of SAR-listed Golden Power International Holdings.
Hikari Tsushin, a wireless-services company and Internet investor, has agreed to pay HK$535.6 million to subscribe 595.1 million Golden Power new shares, a 51 per cent interest in the electronic component-manufacturer.
It will also take up HK$93.4 million worth of Golden Power's convertible bonds due to expire in two years. Upon full conversion, Hikari Tsushin's interest in Golden Power will rise to 55 per cent.
CyberWorks, the Internet operation and investment arm of Pacific Century Group, is to pay HK$210.06 million to subscribe to 233.4 million Golden Power new shares, or 20 per cent of the firm.
The subscription price of Golden Power's new shares was set at 90 cents a piece, a 77.6 per cent discount to Golden Power's last traded price of HK$4.025.
Hikari Tsushin said it would rename Golden Power as Hikari Tsushin International, and make it its holding concern for investments in the region excluding Japan.
It said the new company would carry out a range of Internet-related activities, along with Golden Power's existing manufacturing and distribution of batteries and electronic products.
