BenQ Plans Brand Spinoff, ODM Business Segregation in late 2007
May 04, 2007
Carrying on in the same vein as the business restructuring effort last September, BenQ announced that it will segregate its branded operations and contract manufacturing business, which will be renamed as Jia Da. According to the published scheme, Jia Da will focus on ODM (Original Design Manufacturing) business in the fields of LCDs (Liquid Crystal Display), optoelectronic devices, mobile phones, and automotive infotainment solutions. The spun-off BenQ brand is envisioned as a fabless 3C company and will be wholly-owned by Jia Da in the initial phase. Moreover, BenQ plans to downsize its paid-in capital by 40% to about NT$15.4 billion (US$461.2 million; US$1 = NT$33.4), in order to improve its net worth per share. Pending the shareholders' approval, the restructuring plan is scheduled to take effect as of September 1, 2007.