Local Web security company SecureNet enjoyed a positive market reaction to the announcement that Internet giant Pacific Century CyberWorks (PCCW) has bought a slice of the company.
In a statement issued to the Australian Stock Exchange, SecureNet announced that PCCW would acquire a 5 per cent stake in the company, valued at around $32 million, with options to increase that holding to 15 per cent.
Following the announcement, shares in SecureNet soared as high as $11.20, levelling at around $10.70, up 7 per cent, at the close of trading.
The managing director of SecureNet, Geoffrey Ross, said that the Melbourne-based company would use the PCCW capital injection to develop its 12-month-old joint venture with Cable & Wireless Hong Kong Telecom (CWHKT).
The CWHKT SecureNet venture is centred around the sale of SecureNet smart cards and other Internet security products throughout the Asia-Pacific region.
CWHKT and PCCW are currently in the process of merging.