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GIC invests S$130 million in music streaming provider KKBOX

The music streaming service's long-term growth potential and strong franchise in its home market of Taiwan were behind the move, the Singapore sovereign wealth fund said.

SINGAPORE: GIC, the sovereign wealth fund for the Republic, on Thursday (Aug 28) announced it had invested US$104 million (S$129.6 million) in Taiwan-based music streaming service KKBOX.

In a joint press release, GIC said its investment in the company - which it described as "Asia's top music streaming service provider" - stemmed from its confidence in KKBOX's long-term growth potential, given its "unique music streaming service and strong franchise in its home market".

"With the rising demand of consumer technology in the region, there will be exciting opportunities for the company as it embarks on its expansion," according to the statement.

The newly-injected funds will be used to bankroll the company's overseas expansion and refine its technology and service, said KKBOX CEO and co-founder Chris Lin.

KKBOX is available in Taiwan, Japan, Hong Kong, Singapore, Malaysia and Thailand, and the company said it has over 10 million users. Its major shareholders include Japanese telecom giant KDDI, GIC and HTC, according to the statement.