TSE denies Abit’s request for resumption of normal stock trading

“ The Taiwan Stock Exchange (TSE) yesterday denied a request from Abit Computer to allow its stock to be traded on the TSE under normal conditions, given that the motherboard maker has still failed to provide documents that would clarify its sales in 2003 and the first half of this year, the TSE said in a statement.

The TSE downgraded Abit’s stock, on December 16, to requiring full delivery in cash due to erratic sales transactions and investments recorded in the company’s financial reports.

Following the downgrading, the price of Abit’s stock has fallen by its 7% daily limit for seven consecutive sessions, to close at NT$5.30 yesterday, according to the TSE.

Abit had stated that it bought NT$6 billion (about US$182 million)-worth of products from three affiliate companies of the Kobian Group in India in 2003. The India-based company recorded revenues of just NT$4.3 billion (about US$130 million) for these transactions, the TSE pointed out.

The TSE said that Abit had also failed to explain how it evaluates its long-term equity investments. According to the TSE, Abit had invested US$40 million in an offshore company that has a book value of only US$3.3 million.”