GIGABYTE and ASUS Announced their Joint Venture in Motherboard and Graphics Card Business
Subject: Motherboards | August 9, 2006 - 03:51 PM | Jeremy Hellstrom
In accordance with the relevant regulations according to Company Law,
Securities Law and Business Merger & Acquisition Law, a resolution
of the board of directors was passed on the 8th of August, 2006 for
GIGABYTE Technology Co., LTD (Stock Code: 2376) to transfer the
relevant assets and businesses of its own branded motherboards and VGA
cards to a newly established subsidiary. After all the necessary legal
procedures and obligations have been fulfilled, ASUSTek Computer Inc.
(Stock Code: 2357) plans to invest in this newly established GIGABYTE
subsidiary to help manage the joint venture and develop a strategic
alliance with GIGABYTE. Both parties will work together to increase
operation efficiency, enhance product quality, provide better customer
service and create a higher value for shareholders.
The capital of this joint venture will be NT$ 8,000,000,000 (eight
billion NT dollars). GIGABYTE Technology intends to hold 51% of the
shares and ASUSTek will hold 49%. This joint venture plans to commence
operating in January 2007. There will be five directors and two
supervisors in this joint venture, with GIGABYTE appointing three seats
of directors and one supervisor, and ASUSTek appointing two directors
and one supervisor.