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HONG KONG, Mar 8, 2011 - (ACN Newswire) - Kingsoft Corporation Limited ("Kingsoft" or the "Company"; SEHK stock code: 03888), a leading developer, distributor and service provider of application and entertainment software in China, announced a new step in its business reorganisation. Kingsoft Internet Security Software Holdings Limited ("KIS"), a subsidiary of the Company, has entered into a Share Sale Agreement with FaX Vision Corporation ("FaX"). Pursuant to the agreement, FaX agrees to subscribe to 100,000,000 KIS new shares. FaX will also grant KIS an option to repurchase the KIS shares.
FaX is a holding company owned by Mr FU Sheng and Mr XU Ming, Chief Executive Officer and Chief Technology Officer of KIS respectively. The Share Sale Agreement and Repurchase Option enable the senior management of KIS to play a more active role in operations and management of KIS, thereby motivating them to contribute further into KIS and enhancing its value.
Further to the announcement on 24th January 2011, Kingsoft Online Games business has taken a significant step in the reorganisation plan by establishing a new entity, Westhouse Holdings Limited ("Westhouse"), which would hold the businesses under Chengdu Xishanju Interactive Entertainment Technology Co., Ltd. and Zhuhai Kingsoft Online Game Technology Co., Ltd. The reorganisation enables the founding employees to directly own shares of Westhouse, an incentive for them to contribute to the long-term development of the Company, thereby enhance the value of Westhouse.
Currently, Kingsoft is engaged in a wide range of businesses including Kingsoft Internet Security, Kingsoft Online Games, WPS and Kingsoft PowerWord, of which, Kingsoft PowerWord is benefitting from the tremendous development potential of the huge Engish-language education market in China. Kingsoft is actively engaged in launching a series of reorganisation plans. While the restructuring of Kingsoft Internet Security and Kingsoft Online Games businesses has been completed successfully, the Company is also preparing for the reorganisation of Kingsoft PowerWord and WPS.
Mr Pak Kwan Kau, Chairman and Chief Executive Officer of Kingsoft, said, "We always regard human resources as our most valuable asset. The share sale of KIS and reorganisation of Westhouse are significant as they provide an opportunity for the shareholders and employees to participate directly in the ownership and operation of the subsidiaries, which would motivate them to contribute further to the Company."
Mr Kevin WANG, Executive Director and Chief Financial Officer of Kingsoft, said, "The Company is commited to rationalise its business through further decentralising and reorganising the businesses of subsidaries as well as empowering staff to become subsidary shareholders in order to strengthen the independence and focus of the business units. We are evaluating the feasibility of the reorgansation plan and further optimising the business structure to effectively reduce management costs and improve operational efficiency to deliver better business performance and, ultimately, to maximise shareholders' value through a win-win relationship."
Contact:
Kingsoft Corporation Limited
Ms. Michelle Feng Harnett
Tel: +86 10 82325515
Email: ir@kingsoft.com
Ms. Claire Lee
Tel: +86 10 82334488 - 5850
Email: limiao@kingsoft.com
Topic: Issue of Stocks/Bonds
Source: Kingsoft Corporation Limited
Sectors: IT Individual, eSports, Gaming
https://www.acnnewswire.com
From the Asia Corporate News Network
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