Visual effects giant Digital Domain unfazed by rumours after share plunge

Digital Domain Holdings, which operates the world's biggest independent visual-effects company, has brushed aside rumours that led its share price to plunge in the past two trading days as expansion plans and a management buyout remain on course.

"The company today is no different than what it was two days ago," Digital Domain chairman and chief executive Daniel Seah Ang told the South China Morning Post on Thursday.

Seah said no executive director or senior management member at Digital Domain had been arrested. He said mainland businessman Che Feng, rumoured to be the major shareholder arrested this week by China's anti-graft authorities, neither had an equity stake nor management role in the company. "Mr Che is a convertible bond holder," Seah said.

He also denied that the company's expansion initiatives, including a joint venture with Canadian interactive digital media company Immersive Ventures, have run aground.

Speculation in the market, however, continued to bedevil Digital Domain as its shares took a 14.29 per cent tumble yesterday to close at HK$1.08. That followed Wednesday's 41.4 per cent fall when the volume of company shares traded reached a record-high 2.42 billion.

"Our focus is not on the stock price, but on our goal to develop Digital Domain into a technology company," Seah said.