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Wistron to acquire LCD maker Lite-On

Local electronics maker Wistron Co (緯創) said yesterday it would spend NT$9.2 billion (US$303 million) in cash to buy a liquid-crystal-display (LCD) monitor unit from Lite-On Technology Corp (光寶科技) to boost its sales and competitiveness.

Wistron would acquire Lite-On’s manufacturing equipment, inventory and patents, as well as employees, a company statement said.

The deal “will complete Wistron’s LCD monitor product line and increase the product’s business,” Wistron said.

Following the acquisition, Wistron would be in a better position to offer more competitive prices, paving the way for a next wave of technological cooperation, it said.

Lite-On’s LCD monitor unit generated NT$83 billion in revenues last year.

The transaction is scheduled to be completed in the third quarter.

In addition, Wistron said that it would sell a maximum of 24 million common shares.

The acquisition and new share offering will be discussed during an annual shareholder meeting on June 25.

To fund purchase of raw materials overseas, Wistron will also offer a maximum of 300 million common shares in the form of global depositary receipts.

Wistron said yesterday that its first-quarter net income rose 53 percent year-on-year to NT$1.68 billion, compared with NT$1.1 billion a year ago.


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