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.
GIGABYTE and ASUS Announced their Joint Venture in Motherboard and Graphics Card Business
Source: GIGABYTE Technology