|
|
Friday, November 26, 1999, updated at 14:51(GMT+8) Sci-Tech Beijing Futong attracts Start Computer-systems integrator Start Technology has agreed to acquire a 40 per cent stake in computer giant IBM's largest distributor in the mainland - Beijing Futong ComputerLand, China Daily reports. Start Technology will pay for the 41 million yuan (about HK$38.28 million) acquisition in cash, which was raised through a share placement earlier this year. Start Technology chief executive Michael Chen said the acquisition would help strengthen the two companies' relationship with IBM. According to Beijing Futong general manager Chen Jian, the company has a 64 per cent share of IBM's distribution business in the mainland. Beijing Futong recorded a net profit of about 20 million-yuan, on turnover of about 300 million yuan last year. It will guarantee that its net profit will not be less than 20 million yuan next year and 25 million yuan in 2001. The 41 million-yuan acquisition price will give Beijing Futong a valuation of 100 million yuan, or five times its guaranteed earnings next year. The acquisition deal is expected to be completed before the end of January. Mr Chen said the mainland's expected entry into the World Trade Organisation would help bolster investment in computer systems. Printer-friendly Version In This SectionSearch Back to top Copyright by People's Daily Online, All rights reserved |
Relevant Stories Internet Links |