Mitac International, a Taiwan-based maker of IT products and GPS navigation devices for ODM clients and own-brand sale, will be transformed into Mitac Investment Holding through conversion of one share of the former into 0.5 shares of the latter, and will then become a wholly-owned subsidiary. The conversion is scheduled for August 30, 2013, according to Mitac International.
The planned transformation was approved at Mitac's 2013 shareholders meeting on June 24. As the PC industry has faced unfavorable changes arising from fast growing use of smartphones and tablets, Mitac International has to undertake the organizational transformation to cope with the negative impact, company chairman Matthew Miao emphasized at the shareholders meeting.
In one year following the establishment of Mitac Investment Holding, Mitac International will be split into at least two new companies which will be wholly owned by Mitac Investment Holding, Miao indicated. One company will be dedicated to the R&D and production of servers, storage equipment and other types of cloud computing hardware, while the other will focus on the development and production of GPS navigation devices for sale under three own brands, Mio, Magellan and Navman, and peripheral devices, as well as providing cloud computing-based services for users of the devices, Miao said.
