CMGI will take a 5.5 percent stake in the Hong Kong-based company, paying HKUS$6.05 (78 cents U.S.) a share, or about 7.6 percent less than Thursday's closing price. CyberWorks is buying about a 3.5 percent stake in CMGI, paying US$86.25 a share, or 4.2 percent more than Wednesday's close.
CMGI also signed a letter of intent to become a tenant of the Cyberport, an HKUS$13 billion (US$1.67 billion U.S.) technology park in Hong Kong that CyberWorks is building.
CyberWorks aims to provide high-speed Internet-linked e-commerce and entertainment services to homes and businesses. It's a unit of closely held Pacific Century Group. Richard Li, a Hong Kong Internet mogul, is a major shareholder.
The companies said they may form an alliance to develop Internet businesses in Asia and invest in Internet companies and technologies in the United States and Asia. CMGI will make investments in Asia, including Japan, through CyberWorks.
Copyright 1999, Bloomberg L.P. All Rights Reserved.
Play video
There are currently no comments for this post.