Asia Express - Data Communications
Asus Invests in D-Link, Becomes Second Largest Shareholder
July 10, 2009
Taiwanese branded PC manufacturer Asus has invested roughly NT$507 million (US$15.3 million; US$1=NT$33.1) in data communications and networking solution provider D-Link, Economic Daily News of Taiwan reported on July 10, 2009. It is estimated that Asus has acquired 24,000 shares in D-Link at a price of NT$21.13 (US$0.64) per share. Overall, Asus has controlled a 4.27% stake in D-Link and has thereby become the company's second largest shareholder. However, Asus said that its investment in D-Link has been merely of a financial nature and the company has no intention at present to join D-Link's board of directors, according to the Economic Daily News report. It is expected that through the investment in D-Link, Asus will be able to extend its reach into the data communications industry and establish ties with D-Link affiliates, such as networking equipment ODM (Original Design Manufacturer) / OEM (Original Equipment Manufacturer) Alpha Networks and WLAN (Wireless Local Area Network) equipment supplier Cameo Communications.