December 26, 2000, 12:07 PM — Chip giant Intel Corp. will invest $50 million in a newly created company -- Pacific Century CyberWorks Ltd. -- formed to push broadband initiatives in Asia.
Cyberworks is owned by Hong Kong's Pacific Century Group (PCG).
Intel's investment is subject to the successful completion of PCG's purchase of a 75% stake in local telecommunications services provider Tricom Holdings Ltd., expected to be this week.
CyberWorks will become PCG's flagship information technology operation, with the goals of investing in both local and international IT and Internet companies. Also, the new company will handle the negotiations with the Hong Kong government regarding Cyberport, a multimedia development complex. Finally, CyberWorks will also subsume Intel's existing broadband joint venture with PCG, known as Pacific Convergence Corp. (PCC), the firms said in a statement issued yesterday. PCC will become a wholly owned subsidiary of CyberWorks.
Intel and PCG formed PCC in March of last year, with the Hong Kong company holding a 60% share to Intel's 40%. When added together, Intel's stake in PCC plus the chip giant's upcoming $50 million investment will give the U.S. company about a 13% stake in CyberWorks.
Additionally, under the terms of the agreement announced yesterday, Intel will supply the necessary hardware in terms of set-top boxes and servers based on its own chip architecture to support Pacific Century CyberWorks' broadband ambitions, according to yesterday's statement.