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XPEC plummets after acquisition offer withdrawn

FUNDING:The company’s management said it would initiate a buyback scheme to support its share price, but questions remain over where it would get funding

Taipei Times
Date: Sep 01, 2016
By: Lauly Li / Staff reporter

Shares of game developer XPEC Entertainment Inc (樂陞科技) yesterday plunged by the 10 percent

XPEC Entertainment Inc chairman Aaron Hsu, right, and chief financial officer Devin Hsieh, speak at an extraordinary shareholders’ meeting on Tuesday in Taipei. Photo: Chang Hui-wen, Taipei Times

daily limit after a Japanese company canceled plans to invest in the company.

XPEC management sought to reassure investors by saying it would consider a management buyout to protect shareholders’ interests.

“I will do my best to raise funds as soon as possible to carry out a management buyout at NT$128 per share to meet investors’ expectations,” XPEC chairman Aaron Hsu (許金龍) said in an open letter to shareholders yesterday morning, before equity markets opened.

Japan’s Bai Chi Gan Tou Digital Entertainment Co (百尺竿頭) on Tuesday evening said it had decided to abandon its plan to acquire a 25.17 percent stake — or 38 million common shares — in XPEC at NT$128 per share, following a plunge in XPEC shares over the past few months.     [FULL  STORY]

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