Global China to acquire approximately 51% of Sing
* * * * * * * *
Acquisition establishes the Group's media and information services
(Hong Kong, January 8, 2001) Global China Technology
Group Ltd (HKSE: 1105) ("Global China" or "the Group")
announced today it has entered into a conditional sale and purchase
agreement to acquire approximately 51 per cent of Sing Tao Holdings
Ltd. (HKSE: 233) ("Sing Tao"), a leading newspaper publishing
and commercial printing company. The proposed acquisition establishes
Global China's business in the media and information sector services
and complements its other business focuses.
Global China will acquire 215,503,763 ordinary
shares of Sing Tao, representing approximately 51 per cent of the
existing Sing Tao shares, from Lazard Asia Fund for approximately
HK$355.6 million (HK$1.65 per share). Mr. Charles Ho Tsu Kwok ,
Chairman of Global China, also owns 1,428,000 Sing Tao shares. Upon
completion of the agreement, Global China will make a general offer
for all the remaining Sing Tao shares at the same price. The acquisition
values Sing Tao at approximately HK$692 million. The offer price
represents a premium of approximately 20 per cent over the closing
price of Sing Tao shares on the Stock Exchange of HK$1.38 per share
on January 5, 2001, and a discount of approximately 23 per cent
to the audited net asset value per Sing Tao share of approximately
HK$2.13 as at March 31, 2000.
It is the intention of Global China to maintain
the listing of Sing Tao.
"The proposed acquisition is in line with
our strategy to become a leading multimedia content provider for
the global Chinese communities," said Mr. Charles Ho, Chairman
of Global China. "Sing Tao is a perfect vehicle to establish
our media and information services business. It will also complement
our other three business focuses, namely Broadband Technology, Financial
Services, and Education and Training."
"For many decades, Sing Tao has been a
synonym of quality and trustworthy source of information. It has
a strong brand recognition, a massive information database and solid
financial position. Together with our expertise in broadband technology,
we are well positioned to become a leading provider of multimedia
content and services for Chinese around the world."
The fast growth in Internet popularity among
Chinese communities has created a strong demand for quality and
timely Chinese-language information through multimedia channels.
With Global China's expertise in broadband and e-commerce, Sing
Tao will be able to expand its product offerings and distribution
channels to cater to readers' needs in this Information Age.
Founded in 1938, Sing Tao Daily is the oldest
existing Chinese language daily newspaper in Hong Kong. The newspaper
is published in 9 major cities in Asia, Australia, Europe and North
America. Sing Tao also publishes Hong Kong iMail, an English language
newspaper. In addition, Sing Tao operates various successful printing
businesses including South China Printing.
Sing Tao's audited consolidated net profit
for the year ended March 31, 2000 and the unaudited consolidated
losses for the six months ended September 30, 2000 was approximately
HK$2.8 million and approximately HK$7.6 million respectively. Its
audited net tangible asset as at March 31, 2000 and unaudited net
tangible asset value as at September 30, 2000 was approximately
HK$895 million and approximately HK$881 million respectively.
Goldman Sachs Asia L.L.C. has been retained
by Global China to advise on the transaction.
About Global China Technology Group Ltd.
Global China Technology Group Ltd. was formerly
known as Perfect Treasure Holdings Ltd. In July 2000, Mr. Charles
Ho, Chairman of Global China, became the largest shareholder of
the Group through subscription of new shares. In addition to distribution
of photographic products, the Group is actively expanding its information
technology and Internet related business.
For further information, please contact:
Global China Technology Group Ltd.
Susan Kwan / Judy Inn
Tel: (852) 2830 0300
Fax: (852) 2830 0399
Ogilvy Public Relations Worldwide
Ingrid Cheng / Anita Ko
Tel: (852) 2884 8544
Fax: (852) 2560 0681
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