A resolution of the board of directors was passed on the 8th of August,
2006 for GIGABYTE Technology Co., LTD to transfer the relevant assets and
businesses of its own branded motherboards and VGA cards to a newly established
subsidiary. After all the necessary legal procedures and obligations have been
fulfilled, ASUSTek Computer Inc. plans to invest in this newly established
GIGABYTE subsidiary to help manage the joint venture, and develop a strategic
alliance with GIGABYTE. Both parties will work together to increase operation
efficiency, enhance product quality, provide better customer service and create
a higher value for shareholders.
GIGABYTE Technology intends to hold 51% of the shares and ASUSTek will hold
49%. This joint venture plans to commence operating in January 2007.
In this slow developing market environment, GIGABYTE seeks to establish
an alliance with ASUSTek in order to assist the operation efficiency of
GIGABYTE’s motherboard business. Apart from increased efficiency, GIGABYTE will
have greater resources to expand their diversified business. Because of the
increasingly mature nature of the motherboard industry, this joint venture will
combine the resources of two leading motherboard manufacturers, allowing for a
greater economical impact on the market, better research and development
capabilities and elevated product quality.
The full press release on this merger is posted here.