TAIPEI, Oct. 7, 2015 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM), an online games and computing services provider
(the "Company" or "GigaMedia"), today announced that it has entered
into a mutual termination agreement with the shareholders of
Strawberry Cosmetics Holding Limited ("Strawberry Cosmetics"), a
global cosmetics e-commerce company, to terminate a share purchase
agreement that the parties previously entered into on June 26, 2015 for GigaMedia to acquire a 70%
equity interest in Strawberry Cosmetics (the "Acquisition"). The
total consideration payable by the GigaMedia for the Acquisition
was approximately US$93.1
million.
Due to the recent and drastic slowdown in global economy and
stock market that resulted in a change in business development
strategy on the part of GigaMedia, the board of directors of
GigaMedia concluded that the mutual termination of the Acquisition
was in the best interests of GigaMedia stockholders. In connection
with the termination, the parties have entered into a mutual
termination agreement, whereby GigaMedia will pay US$2.0 million
consideration to the shareholders of Strawberry Cosmetics and the
parties, in turn, have agreed to release each other from any claims
relating to the proposed Acquisition.
Collin Hwang, CEO of GigaMedia,
commented that "While the rapid changes and instability in global
economic condition have forced us to re-evaluate our moving forward
strategy, GigaMedia continues to believe Strawberry Cosmetics to be
well established with a proven e-commerce platform. We believe the
potential synergies continue to exist between GigaMedia's expertise
in information technology and Strawberry Cosmetics' excellent
product portfolio and consumer reach. While GigaMedia will no
longer take a majority interest in Strawberry Cosmetics, we will
continue to explore possibilities of other cooperation arrangements
to explore synergistic opportunities."
About GigaMedia
Headquartered in Taipei,
Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is
a diversified provider of online games and cloud computing
services. GigaMedia's online games business is an innovative leader
in Asia with growing game
development, distribution and operation capabilities, as well as
platform services for games; focus is on mobile games and social
casino games. The company's cloud computing business is focused on
providing enterprises in Greater
China with critical communications services and IT solutions
that increase flexibility, efficiency and competitiveness. More
information on GigaMedia can be obtained from
www.gigamedia.com.
The statements included above and elsewhere in this press
release that are not historical in nature are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. GigaMedia
cautions readers that forward-looking statements are based on the
company's current expectations and involve a number of risks and
uncertainties. Actual results may differ materially from those
contained in such forward-looking statements. Information as to
certain factors that could cause actual results to vary can be
found in GigaMedia's Annual Report on Form 20-F filed with the
United States Securities and Exchange Commission in April 2015.
Amanda Chang
Investor Relations Department
Tel: +886-2-2656-8080
amanda.chang@gigamedia.com.tw
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SOURCE GigaMedia Limited