Re: Q&A in connection with contents should be disclosed in the restructuring report in case that the asset to be purchased is game company in the process of approval and examination of merger, acquisition and restructuring for listed companies
In the process of approval and examination of merger, acquisition and restructuring for listed companies, what contents should be disclosed in the restructuring report in case that the asset to be purchased is game company? What are the special requirements for independent financial advisor? (September 18, 2015)
Reply: Applicant shall analyze and disclose the business data as follows in restructuring report by combining with the feature and operating model of game company: total number of players of main games, number of paying players, number of active users, monthly consumption per person within the period of paying players report, ratio between recharge and consumption, age of players and their geographical distribution, developer etc. At the same time, applicant shall disclose the introductions in respect of bringing the undeveloped projects into income method evaluation scope, and the introductions as to the reasonability of value of discount rate and risk parameter of the high-risk and high-fluctuated company.
The independent financial advisor should conduct special verification in terms of the performance authenticity of a game company, and special verification report shall be submitted alongside the application documents which are filed by applicant to supervision authority. The independent financial advisor meanwhile provides the instructions about the verification method, process, scope and other related matters.