Battered Japanese Internet investor Hikari Tsushin is to sell its controlling stake in its Hong Kong subsidiary for HK$107.12 million. It is offloading its 51 per cent stake in Hikari Tsushin International at a distress-sale price of 4.5 HK cents per share, a 66.16 per cent discount to the last closing price of 13.3 HK cents. The sale price, which is below the stock's historic low of 6.3 HK cents, will see the Tokyo-listed parent book a 6.1 billion yen (about HK$383.4 million) special loss for the year to next August. The buyer is Hong Kong-based investment company Noble Island International. Hikari Tsushin is the third foreign company to declare the failure of a Hong Kong backdoor listing affected during last year's Internet frenzy. In February, US-based online games operator Sega.com sold its SAR-listed vehicle back to a former major shareholder for HK$139 million. The company has since returned to its form of Cheong Ming Investments. Shareholders in Renren Media, which included News Corp, agreed to sell their 67 per cent stake in the company for HK$68 million in April. Formerly known as Golden Power, Hikari Tsushin International's main business is making and distributing batteries. The Japanese parent teamed up with Pacific Century CyberWorks to take over Golden Power for HK$839 million in December 1999. CyberWorks and Hikari each paid 22.5 HK cents a share under the takeover deal. Hikari paid HK$629 million, including a HK$93.4 million convertible bond, for a controlling stake. CyberWorks paid HK$210.06 million for a 20 per cent stake. In a deal aimed at strengthening their relationship through crossholdings, Hikari president Yasumitsu Shigeta and CyberWorks chairman Richard Li Tzar-kai also agreed to swap US$1 billion worth of their shares in their companies. Noble Island is paying just 20 per cent of what the two companies paid two years ago. According to a source, Noble Island will launch a general offer to take over the remaining shares from shareholders at 4.5 HK cents a share. Analysts believed CyberWorks might need to book a HK$169.57 million loss if it accepted Noble Island's offer. CyberWorks spokesman Joan Wagner said: 'We will review the terms of the offer, but no decision has been made yet.' Hikari Tsushin International finished at 13.3 HK cents before trading was suspended yesterday, having risen 7.3 per cent in the past month and 29.13 per cent in the past three months. In October, Tokyo-listed parent Hikari Tsushin said its net loss for the year to August was 56.35 billion yen, against a profit of 5.07 billion yen in the previous year.