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CyberWorks to Pump $10 Million Into CASH On-line

CyberWorks Ventures Ltd, the venture arm of regional broadband player Pacific Century CyberWorks, will through an investment of HK$39 million (US$5 million) subscribe to 5 percent of CASH On-line, an online stockbroker and financial information provider.

CASH On-line is a 85 percent owned subsidiary of Celestial Asia Securities Holdings Limited (CASH Group), an established trading house in Hong Kong, and provides online and mobile phone-based financial services and content.

CyberWorks has an option to suscriber to another 5 percent of CASH on-line for the same price. After completion of this option, the CASH Group's stake in the online property will be diluted from 80.56 percent to 72.78 percent. The subscription price and option price both represent approximately HK$866 (US$114) per share.

"We're pleased that following Hikari Tsushin, Inc. and Fortune, another venture capital [firm] invests in CASH On-line," commented CASH Group chairman Bankee Kwan at a press conference. "CyberWorks will take an important role of advising CASH On-line on its aggressive business plan in Hong Kong and Asia Pacific, and helping to improve its efficiency."

Kwan said that HK$78 million (US$10 million) raised will be used for further development of CASH's technology, funding a marketing campaign, and strategic acquisitions.

Kwan added that CASH would continue to look for investors that bring synergistic and strategic benefits to the company's online business.

At the end of last month, CASH On-line had a paid-up capital of US$780,000 and a net asset value of approximately HK$57.6 million.