Shares in Taiwanese renewable energy company Formosa Smart Energy have become worthless paper, and now the son of the company's former general manager wants to buy them at NT$50 per lot — a severe loss for existing shareholders.

• Formosa Smart Energy was delisted in June this year; before the delisting each lot was still worth NT$3,510, whereas the acquisition price now amounts to just NT$50.
• The bidder is Hu Cheng-chieh, son of former general manager Hu Hui-sen. He plans to buy 200 million shares, which would give him close to a 70% stake if the offer succeeds.
• The company's losses drove its net worth negative, chiefly because a subsidiary contracted to work on Taipower's offshore wind power projects was hit by the pandemic, war and sharply rising raw material costs.
• Independent experts assessed the fair price range at NT$0 to NT$0.25 per share, so NT$0.05 was judged "fair and reasonable," and the board gave its approval today.
• Market observers are drawing comparisons with the script followed by Powerchip, which delisted from the over-the-counter market and later relisted after restructuring as Powerchip Semiconductor Manufacturing Corporation, speculating about whether a similar turnaround is being attempted.

Outlook: Shareholders must decide for themselves whether to sell. If the tender offer is completed successfully, the market will be watching closely to see whether the Hu family pushes for a restructuring of the company and a subsequent return to the stock market.