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AU Optronics board okays Qisda plan

AU Optronics Corp (友達光電), the nation's biggest maker of liquid-crystal-display (LCD) panels used in computers and TVs, yesterday said its board had approved a plan to significantly boost its holding in local electronics maker Qisda Corp (佳世達) at a maximum level of NT$2 billion via a private placement.

Through this investment, the company aimed to strengthen strategic partnerships and created a three-win strategy for AUO, Qisda and customers, the company said in a statement. Qisda holds a 7.8 percent share of the flat panel maker.

AU Optronics planed to subscribe to 90.46 million common shares of Qisda at NT$22.11 a share, the statement said. This represents an approximately 14 percent discount from Qisda's closing price of NT$25.6 yesterday.

The panel maker will have a 9.58 percent stake in Qisda, up from 5.12 percent previously.

Qisda is an electronics manufacturing unit separated from BenQ Corp (明基), which experienced an unsuccessful takeover of Siemens AG's unprofitable mobile unit.

Qisda said last Friday that it planned to raise about NT$5 billion by selling 226 million new common shares via private placement at NT$22.11 per share, in order to improve its financial structure. Subscribers will be entitled to a three-year lock period, the company said.

Qisda primarily makes LCD TVs, computer monitors and mobile phones.
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