Swedish holding company and private equity firm Investor has sold its stake in Hong Kong-based technology holding company imGO to Global Town Limited. Investor’s partners in the venture, Ericsson and Hutchison, have also disposed of their interest in the firm. 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.
Investor sold its 33 per cent stake for E92m, generating a capital gain of around E11m on the original $66m investment made by Investor in 2000. Imgo has an option to sell its five investments in the wireless sector to Investor at book value within the next three to twelve months, which Investor will incorporate into a new Asian unit.
Investor has not earmarked any further funds as yet for the proposed unit although the unit is likely to continue its strategy of investing in wireless and related technology firms.
Investor wrote down Skr2.8bn (E300m) on its private equity business in 2001, contributing an overall decrease of Skr2.7bn to the portfolio's Skr12.4bn total net asset value for the year. The write-down in 2001 was more than double the 2000 value of Skr1.2bn.