A committee investigation report released yesterday showed possible flaws in the method used to assess its value. The share price was calculated according to CMPC’s book value per share of NT$72.49, multiplied by 1.09 (book value adjustment quotient) and 0.81 (share price adjustment quotient), with the committee expressing doubts about the reasonableness of the three figures. The book value per share was mostly calculated based on the government’s “announced values” of CMPC properties, which were well below their real market values, so the book value of NT$72.49 per share “could not reflect the real value of the properties registered under CMPC,” the report said. There is no issue of liquidity for publicly traded stocks, but it constituted a problem for CMPC shares, which were not publicly traded. Therefore, [we] shaved about 20 percent off [the CMPC share price], which was quite subjective,” Chang was quoted as saying.

Source: Taipei Times August 09, 2017 15:56 UTC