Abit in financial difficulty?
Abit, maker of some very popular motherboards among PC-enthusiasts, may be struggling financially. Digitimes has reported supplier’s of PCBs and core logic chipsets became concerned after company chairperson Remond Lu stated banks may freeze Abit assets. The TSE (Taiwan Stock Exchange) downgraded Abit’s stock yesterday alluding to iniquitous financial practices.
“Over 70% of Abit’s total import and export business in the first half of this year were conducted through seven Hong Kong-based companies, all of which were located at the same address, with a registered capital of just HK$2 each, the TSE said.”
“The TSE also suspects that management at Abit might have embezzled company funds through the issuance of a euro convertible bond (ECB). According to the TSE, Abit invested US$40 million in an offshore company with a book value of only US$3.3 million. The owner of that offshore company then bought a portion of the US$75 million ECB issued by Abit last year.”
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