Guoco Land, part of the Guoco Group which owns Dao Heng Bank, has agreed to be taken over by a group of companies looking for a Hong Kong listed platform to launch technology businesses. Investor, Sweden's largest holding company, Swedish mobile-phone maker Ericsson and Hutchison Whampoa have agreed to acquire a 60 per cent stake in Guoco Land for US$177 million. Guoco Land - which will be renamed after the transaction is completed - will focus on capturing growth opportunities in mobile-phone technologies, applications and content. Shares in the company had jumped 59.5 per cent to HK$6.70 before the counter was suspended on March 13, pending the outcome of the talks. Guoco Land, an investor in prime Hong Kong real estate, has a market capitalisation of HK$1.69 billion. After the transaction, Investor will own 33.7 per cent of the company's enlarged share capital. Ericsson will hold 16.4 per cent, Hutchison 9.9 per cent and Guoco Group - a member of Hong Leong Group Malaysia - will hold 24.2 per cent. The move comes at a time when overseas companies are searching for investments in locally listed companies or backdoor listings. Analysts believe that interest in tapping the local capital market intensified after the recent success of Li Ka-shing's Internet venture Tom.com. Hutchison's group managing director Canning Fok Kin-ning said: 'Hutchison can contribute its wealth of knowledge in Asia and extensive Internet and telecommunications infrastructure and services to the success of the [new] company.' Marcus Wallenberg, president of Investor, said the partners in the venture would not only contribute capital, but also advanced knowledge and a broad network in the Asia region. 'Knowledge and network are the key factors today in the success of ventures of this nature,' he said. The deal is still subject to final approval by the authorities and independent shareholders, and Investor, Ericsson and Hutchison will jointly subscribe for a controlling stake in the company. On Friday, Guoco Land announced an attributable profit of HK$825,000 for the six months to December 31. This compared with a HK$105.37 million loss for the previous period. Investor has a net asset value close to US$20 billion and is a leading shareholder in a number of companies including engineering firm ABB, Ericsson and car-maker Saab. In addition, through its New Investments arm, Investor has put money into start-up and growth companies in the United States, Asia and Europe. Investor's largest shareholders are the Wallenberg family foundation and a number of mutual and pension funds. Claes Dahlback, executive vice-chairman of Investor, will become chairman of the renamed Guoco Land, and Winnie Fok, managing director of Investor Asia, will become interim chief executive.