Investor, Sweden's largest holding company, Ericsson, a global leader in telecommunications, and Hutchison Whampoa, a leading Hong Kong based multinational, today announced the acquisition of a controlling interest in Guoco Land Limited (the Company) which will expand its business to include a venture capital operation to focus on the mobile Internet industry in Asia. The three partners will contribute a total of USD 177 million to the Company.
Leveraging the expertise of its shareholders, the Company plans to develop a significant business in the wireless Internet industry. The Company will focus on capturing growth opportunities in mobile technologies, applications, and content. This strategic alliance will position the Company to be a driving force behind the global convergence movement in the telecommunications sector.
"In this partnership among Investor, Ericsson and Hutchison, we will be able to contribute not only capital but also advanced knowledge and a broad network in the Asian region," said Marcus Wallenberg, President of Investor AB. "Knowledge and network are the key factors today in the success of ventures of this nature."
"The mobile Internet is sweeping the globe, and Asia will be a key development center," said Kurt Hellström, President of Ericsson. "As a global leader in mobile technology, Ericsson is already working with a number of Asian operators in pioneering the mobile Internet. We are very pleased to be part of this venture, fostering innovation and development at all levels of this exciting new industry."
Commenting on the joint venture, Group Managing Director of Hutchison Whampoa Limited Mr. Canning Fok said, "We are pleased to be partnering with Investor, a leading company in Sweden, and Ericsson, the world leader in mobile communications. Hutchison can contribute its wealth of knowledge in Asia and extensive Internet and telecommunications infrastructure and services to the success of the Company and we look forward to greater co- operation opportunities with Investor and Ericsson in the future."
Mr. Claes Dahlbäck will be appointed Chairman of the Company and Ms. Winnie Fok will be appointed interim CEO of the Company. Mr. Dahlbäck is the Executive Vice Chairman of Investor AB. Ms. Fok is the Managing Director of Investor Asia Limited.
The other directors of the Company will include Mr. Börje Ekholm, Mr. Galeazzo Scarampi, and Mr. Kjell Sörme. Mr. Ekholm is the Global Head of the New Investments arm at Investor AB. Mr. Scarampi is the CEO of Investor Asia Limited. Mr. Sörme is the Head of Asia Pacific and an Executive Vice President of Ericsson.
Subject to final approvals of the authorities and existing independent shareholders of the Company, Investor, Ericsson, and Hutchison will jointly subscribe for a controlling stake in the Company, a company listed on the Hong Kong Stock Exchange. Upon completion of the transaction, the Company will be renamed and Investor will become the lead shareholder with 33.7 percent of the enlarged share capital. Ericsson will hold 16.4 percent of the enlarged share capital. Hutchison will hold 9.9 percent of the enlarged share capital. Guoco Group, a member of the Hong Leong Group Malaysia, will hold 24.2 percent of the enlarged share capital. A substantial portion of Investor's participation in this transaction is earmarked for the soon-to-be established Investor Capital Partners - Asia Fund, L.P.
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