Asia Express - Mobile Communications
Compal Electronics to Merge Compal Communications for NT$16.13 Billion
October 01, 2013

Compal Electronics announced that it seeks to purchase a maximum of 317.3 million shares of its mobile phone subsidiary Compal Communications on the open market from October 1 to November 19 for an estimated total amount of NT$16.13 billion (US$545.89 million; US$1=NT$29.548), according to the United Daily News on October 1. Compal Electronics currently holds a 47.78% stake in Compal Communications. After the merger, which is expected to be concluded by April 2014, Compal Communications will be delisted from the stock exchange and become a division in the parent company. The merger will help Compal Electronics cut into mobile device market by leveraging the talents, technologies, and customer bases built up by both sides, said the company.