Technology investor vLink Global has completed the purchase of an 85 per cent stake in an online movie store for HK$255 million in cash - more than 250 times the retailer's net asset value - despite legal attempts by shareholders to stop the deal.
Korean conglomerate Samsung, an investor in vLink, took out an injunction in an attempt to stop the transaction. But the injunction was dismissed in court and the deal was completed last month, according to an announcement by vLink.
The online movie retailer WebVideo Shop.com has a net asset value of HK$966,829 and made a net profit of HK$966,729 from October 13, 1999 to January 31 this year, according to management accounts. No audited accounts for the firm, which was set up in October 1999, are available.
An independent valuation of Web VideoShop.com was completed last month by American Appraisal Hongkong, which valued the firm's entire equity at HK$306.9 million.
The 85 per cent stake in WebVideo Shop.com was sold by the site's co-founder Alfonso Fung.
VLink executive director Alex Wong Yau-kuen said in yesterday's announcement there was high growth potential for the business, which would cover Greater China and Southeast Asia.
