China.com Shareholders Approve Mobile Acquisition
AND BEIJING - China.com Inc., a Hong Kong listed subsidiary of CDC Corporation, shareholders have approved the acquisition by CDC Mobile of Timeheart at a general meeting of shareholders. The transaction was deemed to be a 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 Mobile Valued Added Service ("MVAS") provider in China, has been operating since 2001 and provides a 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. For the year ended December 31, 2005, Timeheart recorded a net profit of approximately $3.5 million as calculated under Hong Kong GAAP.
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 is expected to close within the week.