CDC Corporation to Receive $6.5 Million Dividend from China.com Portfolio Company
September 13 2010 - 9:28AM
Business Wire
CDC Corporation (NASDAQ: CHINA/CHIND), a leading China-based
value-added operator of, and growth investor in, hybrid
(SaaS/On-Premise) enterprise software, IT Services, and New Media
assets, today announced that the board of directors of China.com,
its public listed new media portfolio company in Hong Kong, has
approved a special dividend of $0.08 per share, or $8.2 million to
shareholders. CDC Corporation owns approximately 79 percent of
China.com and, as a result, is expected to receive $6.5 million in
dividends from the planned issuance on Oct. 4, 2010.
Most of the dividends received to date have been used by CDC
Corporation to repurchase, through its wholly-owned subsidiary, CDC
Delaware Corp., almost $126.8 million in principal amount of its
3.75 percent Senior Exchangeable Convertible Notes Due 2011 from
all 11 original purchasers of the Notes, as well as for the
repurchase of its own shares on the open market.
“Our goal with our investment portfolio is to provide superior
returns,” said Peter Yip, CEO of CDC Corporation. “We also hope
that the yield to our shareholders will exceed alternative choices
they may have for investments. We believe the fine performance we
have been seeing in our investment portfolio clearly reinforces the
value in our long-term strategy of bringing our operational
expertise to assets we operate and invest in, which we believe can
deliver added value to our portfolio companies.”
CDC Corporation also indirectly invests, through China.com, in a
China-focused private equity fund investing in some of the leading
China-based enterprises, and CDC Corporation has received
approximately $1.4 million in dividends from this fund since 2009.
CDC Corporation expects more dividend distributions from this fund
since a number of their portfolio companies are recently publicly
listed in the China and Hong Kong stock exchanges and even more
companies are in the process of planning public listings.
Yip commented, “CDC is very pleased with the impressive return
of our investment in China and CDC plans to work with the portfolio
companies of this fund to help them optimize operational
efficiencies and improve compliance in the future. CDC is seeking
either to invest or co-manage in more China-focused funds, or
launch similar funds in China. This will allow CDC shareholders to
participate in the returns of the fast growing China economy
especially in the high tech and new media sectors.”
CDC Corporation also has made a strategic investment in a
Greycroft Partners’ fund. Greycroft Partners, is a venture capital
firm focused on early stage companies, primarily in the digital
media sector. Greycroft Partners is founded by Alan Patricof, its
managing director, and who funded early stages companies that are
now known as leaders in industries such as personal computing and
the Internet.
Yip added, “CDC is pleased to be invited as a strategic
value-added partner to co-invest with Greycroft in exciting cloud
computing companies, such as Marketbright a cloud marketing
automation company. Already, we have helped Marketbright promote
more cost efficient research and development through leveraging
R&D operations in China and implementing our agile development
processes from CDC Software, one of our core portfolio companies.
In addition. we are already seeing success for Marketbright to
cross sell their solution into the 8,000 global customers base of
CDC Software.”
About CDC Corporation
CDC Corporation is a China-based value-added operator of, and
growth investor in, hybrid (on premise and SaaS) enterprise
software, IT, and new media businesses. The company pursues two
value-added investment strategies. The first strategy includes
actively managing majority interests in its core portfolio of
hybrid enterprise software, IT services and New Media businesses,
adding value by driving operational excellence, top-line growth and
overall profitability. The second strategy includes identifying and
executing on opportunities to co-invest with leading venture
capital and private equity funds through minority interests in
fast growth companies in emerging markets related to CDC
Corporation’s core assets. This second strategy, which complements
the first, helps to mitigate risk and enhance deal flow for the
company. CDC Corporation expects to deliver superior returns and
additional value for its shareholders through these strategies, as
well as through its plans to declare and pay regular dividends in
the form of registered shares of its publicly listed subsidiaries
and other assets. For more information about CDC Corporation
(NASDAQ: CHINA), please visit www.cdccorporation.net.
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 forward-looking statements include
statements regarding our anticipated receipt of a dividend from
China.com, including the timing thereof, our plans and expectations
with respect to any potential declaration and payment of pay
dividends by CDC Corporation, if at all, in shares, cash or a
combination thereof, including the timing and amount thereof and
the receipt of any requisite approvals and the satisfaction of any
required conditions, our beliefs regarding the value of CDC
Corporation’s shares and the underlying components thereof, our
beliefs regarding unlocking shareholder value and the potential
effect of any dividend in furthering this objective, our
expectations regarding the continuation of receiving any future or
additional dividends or returns from our majority and minority
direct and indirect investments and any amounts thereof, if at all,
our beliefs regarding our strategies for providing value, our goals
and expectations regarding any potential yields to our
shareholders, and other statements that are not historical fact,
the achievement of which involve risks, uncertainties and
assumptions. 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. If any such risks or uncertainties
materialize or if any of the assumptions proves incorrect, our
results could differ materially from the results expressed or
implied by the forward-looking statements we make. 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, 2009 on Form 20-F
filed on June 30, 2010. CDC Corporation dividends may be declared
by the board of directors of CDC Corporation in its sole
discretion, considering several factors, some of which may be
beyond CDC Corporation’s control. No assurances can be given that
CDC Corporation, or any of its subsidiaries, affiliates, or
minority or majority investments or business units, will declare
and pay an in-kind dividend or any other type of dividend now or in
any future period. Future dividends, if any, may be paid at reduced
rates and amounts than those that may have been
previously-provided, or any such dividends may even be eliminated.
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. Historical
results are not indicative of future performance. For these and
other reasons, investors are cautioned not to place undue reliance
upon any forward-looking statement in this press release.
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