Mitac notebook unit sale to go ahead in February

Mitac International Corp (神達電腦), one of the nation's top makers of personal computers, said it plans to sell shares in its notebook unit by the end of February to raise funds for expansion.

Mitac may sell shares in Mitac Technology Corp, which this year expects to make as many as 800,000 notebook PCs for customers such as Sharp Corp, NEC Corp and Compaq Computer Corp, Mitac spokeswoman Nicky Wang said. Mitac will set the size and price of the sale in the next few days.

The share sale may benefit from a recovery in demand for the nation's notebooks PCs. Taiwan will probably contribute about 58 percent of the global output next year, according to Market Intelligence Center, a state-run information technology think- tank. That's about a fifth more than this year.

"The listing will increase Mitac Technology's name recognition and boost its business in the local market, such as in hiring," Wang said in an interview.

Sales at Mitac Technology, which is 52 percent owned by Mitac, will probably reach NT$17 billion (US$483 million) this year, Wang said. Earnings per share will be more than NT$3.

Mitac, along with other motherboard makers, had voiced concern about the effct war in Afghanistan would have on consumer confidence. Now that the conflict seems nearly over, most in the industry hope for a rebound in consumer buying habits.

Mitac International's net income fell 54 percent to NT$664 million in the nine months ended Sept. 30, from NT$1.4 billion in the year-ago period. Sales fell 31 percent to NT$23.2 billion.

The sale, to be managed by KGI Securities (中信證券), will include shares of some existing shareholders.

Mitac International shares fell 6.2 percent to NT$16.80. The shares of electronics companies on the main TWSE index have risen 28 percent this year, compared with the benchmark 13 percent rise.