Japanese venture capital firm Softbank Corp will invest up to US$384 million in mainland-based internet portal operator Oak Pacific Interactive in the next four years.
According to an agreement reached on Wednesday, Softbank will subscribe to new shares issued by Oak Pacific without taking a controlling stake and appoint a director to the internet firm's board, a Softbank spokesman said.
Oak Pacific chief executive Chen Yizhou also confirmed with mainland media that his firm was seeking US$430 million from the cash call and that Joho Capital had also been approached. The shares on offer amount to 35 per cent of the company's capital.
'The investment in Oak Pacific shouldn't be interpreted as an acquisition by Softbank,' Mr Chen said. 'Softbank was only taking part in our cash call.'
Oak Pacific operates several internet portals on the mainland, including social networks Mop.com and Xiaonei.com, which allow internet users to share their content with others.
Softbank's initial investment of US$100 million will be for development of Xiaonei.com, a mainland equivalent of Facebook, according to media reports.
Mr Chen is an industry veteran on the mainland, having established a website targeting university and college students in 1999.