updated 02:55 pm EST, Fri December 11, 2009
ASUS creates new company to be more competitive
ASUS earlier this week said it plans to contract out its manufacturing operations by spinning off a new company, tentatively called Pegatron Investment Holdings Company, in order to reduce its capital by 85 percent. The new company will sell new shares, with 25 percent retained by ASUS while the other 75 percent will be offered to shareholders, according to an ASUS filing with the Taiwan Stock Exchange.
With this restructuring move, ASUS hopes to improve the competiveness of both its core business and the contract manufacturing operations. ASUS' capital will be reduced by more than $1.12 billion shares with the new company issuing nearly 2.3 billion common shares.
Pegatron is a familiar name as it used to be part of ASUS before becoming its subsidiary and building its own netbooks and smartbooks. [via Netbooked]