Plans for mainland webgame developer Forgame Holdings Ltd (0484.HK) to buy a stake in Taiwan’s Magic Feature could run afoul of Taipei’s ban on mainland investors playing a role in mobile or online games on the island, Apple Daily reported Tuesday, citing a company statement.
The Hong Kong-listed company announced in early March that it would plow US$70 million into Magic Feature to buy 21 percent of the company, with an option to raise that stake to 35 percent before the end of this year. Forgame’s stock price has more than halved since early March as the market has questioned whether the Magic Feature offer is overpriced, the report said.
A Taiwan Industrial Development Bureau spokesman was quoted as saying that the island did prohibit involvement in those sectors but mainland companies could be involved in mobile games via authorized local agents, the report said.
Forgame said that whatever the outcome, it and Magic Feature will still work together.
The Taiwan company’s best-known game “Tower of Saviors” is similar to the Japanese game “Puzzle & Dragons” and is played widely on the mainland, Hong Kong and Taiwan. Tencent is the exclusive operator of “Tower of Saviors” on the mainland.
– Contact us at [email protected]