Hikari Tsushin, PCCW Take Over Golden Power for $108 Million

Japan’s Hikari Tsushin Inc. is partnering with Hong Kong’s Pacific Century Cyberworks in a HK$839 million (US$108.2 million) takeover
of electronic
component manufacturer Golden Power International Holdings.

Golden Power will be renamed Hikari Tsushin International Limited. The new company will expand into
Internet-related activities while
continuing its existing business: manufacturing and distribution of batteries and electronic products.

Hikari, a major provider of Japanese
wireless mobile communications and
Internet services with market capitalization of approximately
US$63 billion, has agreed to pay HK$535.6 million (US$69.1 million)
for 595.1 million Golden Power new shares, a
51 per cent interest.

Hikari will also take up HK$93.4 million (US$12 million)in Golden
Power convertible bonds due to expire in two years.

CyberWorks, the Internet operation and investment arm
of Pacific Century Group, will inject HK$210 million (US$27.1 million)
in exchange for 233.4 million Golden Power new shares,
or 20 per cent of the firm.

“We believe that both Pacific Century CyberWorks and Hikari Tsushin, Inc. share a similar business
strategy and will mutually benefit from forming a strong business alliance in exploring and developing
business opportunities in the dynamic while enormous technology and media field,” said Hikari’s executive managing director Masahide
Saito.

Hikari Tsushin’s share price on Japan’s Nikkei index
leaped 10.1 percent on news of the takeover. CyberWorks
gained 22.25 percent on Hong Kong’s Hang Seng index to a record
HK$19.50 (US$2.52).