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Gigabyte and Asustek Merger Details Emerge - PCstats.com Gigabyte and Asustek Merger Details Emerge
Wed, August 09 2006 | 2:29PM | PermaLink Feedback?

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‚Äôs 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.

FULL STORY @ Archived from PCSTATS
http://www.pcstats.com/releaseview.cfm?ReleaseID=1482
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