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China element in XPEC probed

China element in XPEC probed

TAIPEI (Taiwan News) – Prosecutors raided locations and questioned ten individuals related to DY Game Tuesday in connection with a possible Chinese investment in embattled game developer XPEC Entertainment Inc., reports said.
Tuesday’s events were the latest in a long line of developments which started last August, when Japanese-invested Bai Chi Gan Tou Digital Entertainment Company dropped a plan to spend about NT$5 billion (US$159 million) on a stake of 25.17 percent in the gaming developer, the first-ever default on a tender offer settlement in Taiwan. As a result, shares in XPEC fell precipitously, burning many small shareholders, and triggering calls for a thorough investigation.
XPEC Chairman Aaron Hsu was ordered detained after several appeals by prosecutors against court decisions to set bail for the businessman.
Tuesday’s investigation reportedly focused on reports that DY Game, which held 10.98 percent in Bai Chi Gan Tou and therefore amounted to its third-largest shareholder, was controlled by capital from China.
Investigators raided seven locations in New Taipei City related to DY Game Tuesday and questioned its chief, Hsieh Chi-yao, and nine other individuals, reports said. The company specializes in developing games for smart TV and has China as its major market.
Commentators and lawmakers alleged that Bai Chi Gan Tou moved its offices from Xizhi to Neihu to Banqiao along with DY Game, revealing close links between the two companies.
After a first round of questioning Tuesday, Hsieh and the nine others were likely to be transferred to the Taipei District Prosecutors Office for further interrogations.

Updated : 2021-09-22 14:31 GMT+08:00