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Chinadotcom Acquires Shares in BMCMedia

[Sydney, AUSTRALIA] Online Asian powerhouse chinadotcom has taken 7.75 million shares in Australian online advertising group BMCMedia, an investment worth AUS $8.5 million (US $5 million).

Chinadotcom has acquired BMCMedia shares at a price of AUS $1.09 (US $0.65) each, based on a 33.3 percent premium to BMC's average share price in the 30 trading days prior the end of June.

The 'giant' Asian Internet group also has the right to subscribe an additional 7.75 million shares at a 12.5 percent discount to the market price at the time the option is exercised within the next 12 months,' BMC said in a statement to the Australian Stock Exchange.

Chinadotcom was one the Asian and US companies that had expressed interest in buying a stake in the Australian company, BMC's chief executive officer Anthony Bertini said.

"BMCMedia chose chinadotcom because we share a similar view of the huge growth opportunities that are currently emerging in the Asian Internet market," said Bertini.

"We both see huge growth in this market over the next few years. Chinadotcom's investment recognizes that we are one of the preeminent players in that market."

According to the statement, Chinadotcom is a leading pan-Asian Internet company integrating the dominant business solutions company in Asia, Web Connection and 24/7 Media Asia.

While the online advertising networks of BMCMedia and 24/7 Asia will continue to operate independently, the two will explore opportunities for synergies between chinadotcom's and BMCMedia's subsidiary consulting businesses and other investments.