Pacific Century CyberWorks to Raise $258M From New Shares

Regional broadband player Pacific Century CyberWorks will raise over HK$2 billion (US$258 million) from a placement of 360 million new shares.

The shares are selling at HK$5.55, a 10 percent discount off PCCW's quoted price of $6.15.

Controlled by Star TV founder Richard Li, CyberWork's plans to deliver broadband access and content services to home throughout Asia over a satellite to cable distribution system.

Crucial to this delivery is a set-top box being developed by an Intel-Pacific Century joint venture, Pacific Convergence Corp. (PCC). After CyberWorks completes 100 percent acquisition of PCC, Intel will have a 13 percent stake in CyberWorks.

CyberWorks estimates that the full broadband Internet access will be available to Asian users in the first half of 2001. Its global Internet portal and digital TV service will be ready in the first half of next year while locally-cached content will be online by the end of the year.

This week, CyberWorks met with CMGI representatives while they were visiting Hong Kong, according to sources. Industry observers suspect that PCCW may be interested in the ad management technology of Engage, a CMGI company, for its content operation.