Shareholders Approve Acquisition of Timeheart
for Shares and Cash Valued at $15.7 million
ATLANTA AND BEIJING, Nov. 28 /Xinhua-PRNewswire-FirstCall/ -- China.com
Inc., a Hong Kong listed subsidiary of CDC Corporation (Nasdaq: CHINA),
today announced that its shareholders have approved the acquisition by CDC
Mobile of Timeheart at an extraordinary general meeting of shareholders.
The transaction was deemed to be a very substantial acquisition under Hong
Kong securities regulations requiring shareholders' approval. The
transaction was unanimously approved at the shareholders' meeting with over
3.3 billion shares voting in favor of the acquisition.
Timeheart, a leading Mobile Valued Added Service ("MVAS") provider in
China, has been operating since 2001 and provides a full suite of MVAS
products through personal digital assistant ("PDA"), wireless application
protocol, ("WAP") multi media service ("MMS"), interactive voice response
("IVR"), short message service ("SMS") and media stream with connectivity at
both the national and provincial levels of all four telecom operators in
China. Timeheart's strength in the north-eastern and western provinces of
China is a good complement to CDC Mobile's success in the coastal regions of
China. For the year ended December 31, 2005, Timeheart recorded a net
profit of approximately $3.5 million as calculated under Hong Kong GAAP.
"We are gratified that our shareholders have endorse our strategy with
their overwhelming support of this major transaction. This acquisition
reflects our confidence in China's vast MVAS market and it will further
strengthen our position as one of the leading players in the largest and
fastest growing mobile market in the world," said Xiaowei Chen, Ph.D.,
executive director and CFO of China.com. "Timeheart provide us with
complementary products that will deepen our product offerings and make us
even more competitive in a market which has excellent long-term prospects."
As part of this previously announced acquisition, the maximum
consideration payable, subject to the achievement of certain financial
milestones over the next 15 months, is approximately $15.7 million. The
maximum consideration will be comprised of approximately $2.1 million in
cash and $3.7 million in China.com shares and the remaining balance of
approximately $9.9 million in shares of CDC Mobile. This acquisition will
be earnings accretive for CDC Corporation and China.com Inc and is expected
to close within the week.
About CDC Mobile
CDC Mobile is the wholly owned subsidiary of China.com Inc and is
focused on providing MVAS products to subscribers in China.
About CDC Corporation
The CDC family of companies includes CDC Software focused on enterprise
software applications and services, CDC Mobile focused on mobile
applications, CDC Games focused on online games, and China.com focused on
portals for the greater China markets. For more information about CDC
Corporation (NASDAQ: CHINA), please visit www.cdccorporation.net
About China.com Inc.
China.com Inc. (stock code: 8006; website: www.inc.china.com ), a
leading MVAS and Internet services company operating principally in China
was listed on the GEM of the Stock Exchange of Hong Kong Limited on March 9,
2000. In December 2000, China.com Inc. was admitted as a constituent stock
of the Hang Seng IT and IT Portfolio Indices.
About CDC Games
CDC Games Limited is focused on building a diversified mix of online
game assets and strategic alliances and is a business unit of CDC
Corporation. CDC Games is one of the market leaders of online games in
China with over 37 million registered users. About CDC Software
CDC Software, The Customer-Driven Company(TM), is a provider of
comprehensive enterprise software applications and services designed to help
businesses thrive and become customer-driven market leaders. The company's
industry-specific solutions are used by more than 5,000 customers worldwide
within the manufacturing, financial services, health care, home building,
real estate, and wholesale and retail distribution industries. CDC
Software's product suite includes Pivotal CRM (customer relationship
management), c360 CRM add-on products, industry solutions and development
tools for the Microsoft Dynamics CRM platform, Ross ERP (enterprise resource
planning) and SCM (supply chain management), MVI real-time performance
management, IMI warehouse management and order management, Platinum China HR
(human resource) and business analytics solutions. For more information,
please visit www.cdcsoftware.com .
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995. These statements are based on management's current expectations and
are subject to risks and uncertainties and changes in circumstances. There
are important factors that could cause actual results to differ materially
from those anticipated in the forward looking statements, including the
following: the ability to extend CDC Mobile's product lines and enhance its
geographic coverage, the ability of CDC Mobile to grow its MVAS business
both organically and through targeted acquisitions; the ability to realize
strategic objectives by taking advantage of market opportunities; the
ability to make changes in business strategy, development plans and product
offerings; the ability to integrate operations or new acquisitions in
accordance with the company's business strategy; and the effects of
restructurings and rationalization of operations and regulatory developments
in China. Further information on risks or other factors that could cause
results to differ is detailed in filings or submissions with the United
States Securities and Exchange Commission made by CDC Corporation in its
Annual Report for the year ended December 31, 2005 on Form 20-F filed on
June 21, 2006. All forward-looking statements included in this press
release are based upon information available to management as of the date of
the press release, and you are cautioned not to place undue reliance on any
forward looking statements which speak only as of the date of this press
release. The company assumes no obligation to update or alter the forward-
looking statements whether as a result of new information, future events or
otherwise.
For More Information:
Investor Relations
Monish Bahl
CDC Corporation
Tel: +1-678-259-8510
Email: monishbahl@cdcsoftware.com
Media Relations
Scot McLeod
CDC Corporation
Tel: +1-770-351-9600
Email: ScotMcLeod@cdcsoftware.com
