ASUS to spin off motherboards and graphics cards manufacturing arm Pegatron Technologies
ASUS recently informed Taiwanese stock exchange that it’ll be spinning off its motherboard and graphics cards manufacturing arm Pegatron Technologies from its core ASUS brand. Under the new plan ASUS will be reducing its holding in Pegatron to only 25%. The move is targeted at reducing “any conflict of interest between the two sides.”
The firm further reported that Pegatron Holding will issue two billion new shares to a number of shareholders.
Asus had separated its manufacturing arm in 2008 because the firm wanted to focus more on lucrative laptop market which not only provides higher revenue but also helps in penetrating ASUS brand throughout the world.
The spin-off date is expected to be on July 1, 2010.
