Bright Oceans Advances in Shanghai Trading After IBM Acquires 8.3% Stake
Bright Oceans increased 8.3 percent to 9.43 yuan as of the 11:30 a.m. local time trading break, headed for the biggest one- day gain since Feb. 22. China’s benchmark Shanghai Composite Index fell 0.1 percent.
IBM bought 5.92 million Bright Oceans shares from the Beijing-based software company’s parent for 50 million yuan ($7.37 million) and said it wouldn’t sell the stake in the next year, according to a filing to Shanghai’s stock exchange. Bright Oceans wants to add strategic investors that can help bolster its product development and increase its international exposure, the company said in the statement.
The Chinese company’s profit last year gained 11.7 percent to 82.4 million yuan from 2008 as sales grew 8.7 percent to 928 million yuan, according to Bright Oceans’ 2009 annual report. Bright Oceans stock has fallen 8.6 percent this year, compared with a 27 percent drop in the Shanghai Composite Index.
IBM in January of last year also bought a 1.56 percent stake in Chinese television maker Sichuan Changhong Electric Co. for 108 million yuan. In September 2006, Intel Corp. acquired a $40 million stake in Chinese software maker Neusoft Group Ltd.
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