Lite-On IT on January 20 announced it will purchase 73.354 million shares of Meiloon Industrial, a Taiwan maker of speakers used in cars and consumer electronics devices. The move is a strategic investment to help the company's move into car-use DVD players.
Car-use DVD players and recorders involve more complex technology than PC-use products because of higher shockproof and operating temperature and humidity requirements, according to Lite-On IT’s Optical Disc Drive Business general manager Michael Gong. Meiloon has significant experience in car-use and consumer electronics and many clients that complement Lite-On IT’s advantages in cost control management, Gong indicated. Lite-On IT plans to begin volume production of car-use DVD players at the end of next quarter.
The shares will be purchased at NT$21 each for a total investment of NT$1.5404 billion, representing a 30% stake. They will be acquired from target shareholders from January 23 to March 1 this year. Through the investment, Lite-On IT will become the largest institutional shareholder of Meiloon.
In 2005, Lite-On IT output 18% of the optical disc drives produced worldwide, making it the third largest maker, Gong indicated.
Article translated by Adam Hwang and edited by Stephen Taylor
