Lite-On Technology Corp (
The acquisition of Stark Technology Inc (
"Through the acquisition of Stark Technology, we aim to boost our strength in the car electronics components area," Ancel Lee (
Lite-On is one of several electronics manufacturers, including Hon Hai Precision Industry Co (鴻海精密) and Asustek Computer Inc (華碩電腦), which have decided to aggressively enter the promising auto-electronics industry.
Stark Technology makes a wide range of auto components including LED (light-emitting diodes) auto light modules.
Lite-On will boost its holdings in Stark Technology to 100 percent from roughly 18 percent through the share swap, according to the company statement.
One Lite-On share will be exchanged for 1.7 Stark Technology shares, the statement said.
The merger is scheduled to close by the end of August, it said. To cope with the merger, Lite-On plans to issue 26,000 new shares.
Growth areas
Lite-On, which gets almost half its revenues from selling computer monitors, said it has been looking for new growth areas outside the PC sector.
"We believe the sector will be the next growth engine. We are trying to expand to areas related to our core business," said Elaine Su (
Sales of the world's auto electronics will grow to US$163.46 billion in 2008 from US$134.13 billion last year, according to a forecast by the Boston-based consulting firm Strategy Analytics.
CLSA Ltd analyst Vincent Chen (
Chen forecast that Lite-On earnings would climb around 18 percent to NT$10.38 billion this year from NT$8.82 billion last year.



