B2B media firm
Global Sources Ltd., Singapore, has acquired a 10 percent stake in e-commerce and business information services provider HC International, Inc., China, from IDG Technology Venture Investment, Inc. for about HK$77 million. The purchase was initially announced last month. Merle A. Hinrichs, Chairman and CEO of Global Sources, is likely to join the HC International board.
The deal is seen to represent China's largest B2B media strategic partnership. Together, the two companies operate 72 industry-focused websites serving approximately 4 million suppliers and 950,000 buyers from 230 countries. Combined annual revenue was approximately US$150 million in 2005.
The acquisition is subject to a potential additional future payment of HK$0.6497 per share, if and when certain conditions are met. Post deal, Global Sources holds an 11.24 percent equity interest in HC International, including the small stake it held previously. In addition, Global Sources has an option to increase its stake by about 35 percent at any time within the next 12 months. If implemented, Global Sources will be required to make an open offer for all HC International shares held by the public under Hong Kong regulations.
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