SZSE to Implement Stricter Disclosure Policy on Mobile Gaming M&A
21st Century Business Herald, 11/14/13
The Shenzhen Stock Exchange (SZSE) has announced stricter information disclosure requirements for company mobile gaming assets. According to a SZSE release, the exchange will now require the disclosure of key industry information for mobile games including average revenue per user (ARPU), user distribution structure, recharge channels and amounts, and other information, while at the same time requiring verification of disclosed information through a financial consultant or accountant.
A representative at the SZSE has noted that there has been significant merger and acquisition activity the past year on the exchange, with a focus primarily on industry consolidation. According to the representative, some companies have been found to be utilizing non-material cross-industry investment and expansion into new business sectors to draw increased market attention and share trading activity, with some large shareholders having been found to be reducing their stock holdings at the same time as a company is releasing positive news.
Guangdong-based model car manufacturer Xinghui and Shenzhen-based online game developer and operator ZQGame (Zhongqing Bao Interaction Network) (300052.SZ), both of which are currently involved in mobile gaming asset acquisitions, have had representatives state that their respective acquisitions have not been shelved as a result of the new rules, and that no notice has been received as of yet from the SZSE regarding information disclosure. According to the companies, if a notice is received, information will be supplemented as required.
Editor's Note: For more background on this topic, please see "Model Car Manufacturer Xinghui to Buy Gaming Company" MD 10/18/13 issue and "ZQGame to Acquire Two Mobile Gaming Companies" MD 8/14/13 issue.
Keywords: mobile gaming wireless Shenzhen Stock Exchange regulation M&A
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