RealTime IT News

Softbank Makes Malaysian Move with Stake in DiGi

Softbank Investment (International) Holdings Ltd, plans to acquire a three percent stake in DiGi Swisscom Bhd, a Malaysian mobile phone operator.

The former company is a subsidiary of Softbank Corp, a Japanese player with a global portfolio of over 300 Internet companies.

The transaction will be settled with shares in Cheung Wah Development Co Ltd, a unit of Softbank listed on the Hong Kong Stock Exchange.

A memorandum of understanding was signed in Hong Kong between the DiGi chief executive officer Vincent Tan and a man who has been in the news of late: Softbank's chief financial officer Yoshitaka Kitao.

DiGi has changed its name to DiGI.Com Bhd and Cheung Wah has renamed itself Softbank Investment International (Strategic) Ltd.

According to Tan, DiGi will continue to look for Internet start-ups and wireless operations.

Kitao said that the participation in DiGi is the company's first investment in Malaysia.

"DiGi, like all other companies that Softbank invested in, will have immediate access to the 300 companies in which Softbank has a stake," said Kitao.

With Telenor of Norway and Softbank as its strategic partners, Tan is confident of positioning DiGi at the forefront of Malaysian telco and Net business.