TAIPEI, Taiwan (BRAIN) — Giant Group has ended plans to invest about $20 million to take about a third share in Stages Cycling because the companies were unable to reach definitive agreements on the deal, according to documents Giant has filed with the Taipei stock exchange.
Giant had filed a notice in January saying its board had agreed to invest a total of about $20 million in Stages, which has manufactured stationary bikes for Stages in the past. The January statement said the board approved the purchase of 32.5% of Stages Cycling Inc. common stock for $6.5 million and Stages Cycling's convertible corporate bonds for $13.5 million. Giant made the investment through its subsidiary Gaiwin US I Investment Inc.
Giant said then that its strategy was to expand Giant Group's presence within the indoor cycling market and to build Giant's "cycling ecosystem."
In the new filing, made May 10, Giant said, "The Company and the counterparties are unable to reach mutual consensus on the terms and conditions of definitive agreements, therefore the parties have discontinued the negotiations. The parties have not executed any definitive agreement."
A representative at Stages was not immediately available to comment.
