CyberWorks raises Outblaze stake with China Rich buy

Pacific Century CyberWorks has become the biggest shareholder in Internet company Outblaze after buying the entire 28 per cent interest held by China Rich Holdings for US$26.7 million.

The acquisition raises CyberWorks' stake in Outblaze to 48 per cent. CyberWorks originally held 20 per cent at a cost of US$7 million through subsidiary Asianet System Group.

However, CyberWorks' stake will be slightly diluted to 46.19 per cent after another Outblaze shareholder, Tokyo-based Internet powerhouse Hikari Tsushin, exercised its option to subscribe for new shares equal to 5 per cent of Outblaze, according to Outblaze founder Yat Siu.

The move boosts Hikari's stake to 14.5 per cent of the enlarged capital.

Outblaze's valuation has rocketed to about US$100 million from US$9 million since May, when China Rich Holdings first invested in it.

At that time, China Rich Technology, a subsidiary of China Rich Holdings, invested US$4.5 million to buy a 50 per cent stake in Outblaze from Mr Siu.

China Rich has gained US$32 million in cash since May through a series of disposals.