ASUS – restructuring to reduce capital

15th December, 2009 by adina
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ASUS has revealed its plans to spin off a new company, which would be named Pegatron Investment Holdings Company and would contract out its production operations. This move is intended to result in a reduction of ASUS’ capital by 85 percent. The new company would be in position to sell new shares, 25 percent of them being detained by ASUS and 75 percent offered to shareholders.

This restructuring plan is meant to improve the market position of both the core business and the contract production operations. The capital of ASUS would be this way reduced by about $1.12 billion in shares, while the new Pegatron company would issue about 2.3 billion common shares. Pegatron is not un unknown name in the industry and has been part of ASUS before becoming a subsidiary and building its own smartbooks and netbooks.


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