Hong Kong, Sept 26: America Online Inc. has sold its entire 6.8 million share stake in Chinadotcom Corp., ending all connection with the Hong Kong Internet service provider, Chinadotcom said today. The companies also agreed to cancel AOL's two warrants which would have entitled it to buy more shares of Chinadotcom.
Chinadotcom, which began life as an Internet portal and gradually shifted to providing software products, has over 1,000 employees with operations in over 10 countries. The company had 101.2 million shares on average as of June 30. Its CDC software subsidiary serves the large Chinese export-manufacturing market.
In July, the companies announced a settlement that included the release of all claims between them and their affiliates. Chinadotcom chief financial officer Daniel Widdicombe said the company was glad AOL sold its stake.
"We're pleased to have an overhang on our stock removed and finality reached on this issue, and look forward to pursuing our software strategy focused on two of the fastest growing sectors in China -- export manufacturing and mobile applications," he said. Bureau Report