Hong Kong-based Techpacific, which invests in growth technology companies, said it will issue HK$45.7 million (US$5.9 million) worth of shares to CyberWorks in exchange for its 30 percent stake in Spike CyberWorks Venture.
Techpacific will issue 114.2 million new shares to Cyberworks for HK$0.40 each, a 60 percent premium over its Tuesday's closing price of HK$0.25.
CyberWorks' exit from the venture is in line with its current strategy to cut Internet spending, after interest in Internet and telecom stocks waned worldwide. Li earlier said he will limit yearly spending on Cyberworks' business-to-consumer operations to US$200 million.
Separately, Techpacific will buy a further 21 percent in Spike CyberWorks selling new shares worth US$46 million, the company said. Spike Network's stake will drop to 49 percent from 70 percent after the deal.
Play video
There are currently no comments for this post.