Construction and broadband multimedia firm Prosper eVision has agreed to pay HK$203.8 million for an indirect 60 per cent stake in a computer technology joint venture which has yet to start operations.
The mainboard-listed company said the deal's valuation was based on a 5 per cent discount on the entire venture's HK$357 million valuation given by American Appraisal.
According to the agreement, Prosper eVision bought the entire share capital of Cyber Energy, which agreed to acquire 60 per cent of the joint venture from Shenzhen Holinet.
Shenzhen Holinet holds 75 per cent of the venture, and will inject into it some computer-related businesses and Internet security patents.
The joint venture will produce and sell computer hardware and software, Internet security systems and computer network solutions.
With no significant operations, it booked a before-tax loss of about 558,000 yuan (HK$523,000) from its incorporation in March last year to June 30 this year, and an unaudited net asset value of 15.9 million yuan on June 30 this year.
