GigaMedia Terminates Offer To Acquire 70% Of Strawberry Cosmetics

(RTTNews) - Online games and computing services provider GigaMedia Limited (GIGM) Wednesday said it has entered into a mutual termination agreement with the shareholders of Strawberry Cosmetics Holding Limited to terminate a share purchase agreement between the two firms for GigaMedia to acquire a 70 percent equity interest in Strawberry Cosmetics. The total consideration payable by GigaMedia for the acquisition was about $93.1 million.

Citing the recent slowdown in global economy and stock market that resulted in a change in business development strategy, 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 $2.0 million consideration to the shareholders of Strawberry Cosmetics. The parties, in turn, have agreed to release each other from any claims relating to the proposed acquisition.