LibertyOne Invests In China Trade Portal
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LibertyOne, the online media group, said the Chinese business will establish a portal to service for more than 100,000 medium-to-large sized businesses throughout mainland China, designed to promote and increase the Chinese export market.
LibertyOne will take a three per cent stake in chinaproducts.com, with an option to move to 10 per cent in the future. For its initial stake, it will issue chinaproducts.com with ordinary shares to the value of AUS$4.4 million (US$2.7 million).
LibertyOne's chief executive officer Graham Bristow said the investment in chinaproducts.com will offer his company the opportunity to expand its Web integration, advertising and direct marketing in China.
Under the terms of the agreement, LibertyOne has the first right to provide Web integration services, advertising sales and serving support to chinaproducts.com.
Bristow said LibertyOne's existing presence in Asia through its Web integration business ZIVOand the deal with chinaproducts.com had the potential to facilitate and increase trade with China.
"We believe chinaproducts.com is well-positioned to take advantage of the expected growth in Chinese trade ... and the quickest way to increase trade in and out of China will be via the Internet," he said.
Bristow said LibertyOne is also investigating opportunities in online auctioning.
"LibertyOne can develop its own online auction business and access goods from those businesses linked to chinaproducts.com," said Bristow.
It has been a busy week for media group LibertyOne, who announced an agreement with US company Privaseek to expand a broker of personal information system into Asia earlier this week (see story) and today entered into an agreement with xIBA, a web integration business which will be merged into ZIVO.