Media365
The two Shanghai-listed companies late on Tuesday said they cancelled merger talks because “the market environment has changed significantly since the initial planning stages of this transaction”. They added that “the conditions for implementing this major asset restructuring are not yet mature”.
During an online briefing with investors on Wednesday, Sugon and Hygon said the market changes referred to fluctuations in both companies’ share prices over the past few months.
They said the factors which affected their respective stocks included “changes in the domestic and international environment, the overall trend of the mainland share market, changes in the artificial intelligence industry’s popularity and market expectations”.
“By not merging, Hygon can operate as an independent chip supplier, providing core computing chips to the entire domestic server industry,” said Li Jun, general manager at Beijing-based Sugon, which is listed as Dawning Information Industry Co.
“Sugon, on the other hand, can collaborate with other chip companies as a server manufacturer,” he added.
