CASH-STRAPPED:The Japanese company is in talks over compensation for shareholders affected by its failed XPEC acquisition and is looking to supporters for a capital injection
Date: Oct 03, 2016
By: Lisa Wang / Staff reporter
Bai Chi Gan Tou Digital Entertainment Co (百尺竿頭) yesterday said it is seeking a settlement with the Securities and Futures Investors Protection Center (SFIPC) over a class-action lawsuit against the company’s withdrawal from its acquisition of XPEC Entertainment Inc (樂陞科技).
The center, which serves as the plaintiff of a class-action on behalf of 5,000 XPEC shareholders, sought unspecified compensation for damages caused by Bai Chi’s cancelation last month of the NT$4.86 billion (US$155 million) deal.
Bai Chi said that it was forced to drop the deal after its major financial supporters decided not to finance the acquisition at the last minute.
“Bai Chi will make every effort to compensate [XPEC] shareholders who participated in the tender offer bid to recover their losses,” the company said in a statement released yesterday. “Bai Chi started an initial negotiation last month with the SFIPC via its lawyers to explore the possibility of a settlement. Bai Chi hopes to settle the case in the short term.” [FULL STORY]