Aurora Corporation, a leading sales channel of office automation equipment and furniture as well as IT and telecommunication products in Taiwan, has decided to spin off its telecommunication business unit by establishing a 100%-owned subsidiary with initial capital of NT$1.2 billion and then transferring the business unit to it, according to the decision made by the company’s board of directors on March 23.
This is to facilitate a strategic-alliance between this business unit and local operators of mobile communication services as well as show the real market value of 226 retail chain stores of handsets currently operated by the business unit, Aurora pointed out. The spin-off is especially important as 3G (third-generation) mobile phone services and transferable mobile phone numbers (users can change operators while keeping the same phone numbers) will be launched in the second half of this year, Aurora indicated. The spin-off is subject to the final approval at the 2005 shareholder meeting slated for June 14.
Aurora expects the new subsidiary to expand its retail chain to 250-280 stores by the end of this year. Aurora brought in revenues of NT$5.6 billion from selling 630,000 handsets last year and forecasts sales of one million handsets at around NT$7.0 billion this year.
Article translated by Adam Hwang and edited by John McClure
