Taiwan-based EMS provider Lite-On Technology has announced plans to increase its stake in Lite-On IT, a Taiwan-based optical disc drive (ODD) and SSD (solid-state drive) maker, from 42.32% currently to 100% in a bid to integrate both companies' resources, improve R&D capability and operational efficiency, and decrease production cost.
Lite-On Technology will firstly establish a wholly-owned subsidiary, Baoyuan, specifically for the takeover. Baoyuan will undertake open purchase of the remaining Lite-On IT shares at NT$32.75 per share, a 22.22% premium based on the closing price of NT$26.8 on January 30, Lite-On Technology said, adding that the share purchase will take during January 31-March 15.
Baoyuan will then merge with Lite-On Technology, with the latter to be the surviving company, Lite-On Technology said, adding Lite-On IT will become Lite-On Technology's wholly-owned subsidiary.
As Lite-On IT has stepped into SSD production, the takeover will be conducive to its business development in cloud computing applications, Lite-On Technology said. Following the takeover, Lite-On Technology expects PC and related products to account for 50% of its consolidated revenues, mobile terminal devices for 25%, servers for 10% and opto-electronic products for 8%.
Article translated by Adam Hwang
