Investor AB, Ericsson and Hutchison Whampoa have reached an agreement to sell their holdings in imGO, a listed venture capital company based in Hong Kong to Global Town Limited, a private investment holding company. Investor held a 26 per cent stake in the company and sales proceeds amounted to SEK860 million, generating a capital gain of SEK110 million for the firm. Investor is also launching a new private equity subsidiary targeting early stage and expansion capital deals in Asia. No specific funds have been allocated to the new venture as yet.
According to Frederik Lindgren, vice president investor relations, imGO also has an option to sell its five investments in the wireless sector to Investor at a book value of $12.4 million within three to 12 months. This is subject to shareholder approval at the imGO Extraordinary General Meeting.
imGO was formed in 2000 when Investor AB, Investor Capital Partners Asia Fund, Ericsson and Hutchison Whampoa acquired a majority interest in the listed company, Guoco Land. Ericsson held a 16.4 per cent stake in the company which it bought for SEK460 million and sold for SEK530 million. Hutchison Whampoa held a 9.9 per cent stake in the company.
imGO was formed with the intention of focusing on the mobile Internet industry in Asia and has, since its formation, invested in five companies in the wireless sector in Asia.