Notebook ODM Compal Electronics has announced its merger with Compal Communications after completing its tender offer to purchase a majority stake in the handset subsidiary.
Compal now holds 90.39% of the outstanding shares in Compal Communications. Including shares held by its other subsidiaries, Compal has a 92.51% stake in Compal Communications.
Compal disclosed it will make a cash offer to acquire the remaining 7.49% stake in Compal Communications, which is set to delist from the main board of the Taiwan Stock Exchange (TSE) on February 27, 2014.
The pair originally planned to complete their merger by the end of April 2014.
Compal estimated that in 2015, non-notebook product lines will account for more than 30% of company revenues. Following the merger, Compal is looking to expand its business in the smartphone and tablet fields.
In other news, speculation circulated recently in the industry that Compal Communications has grabbed orders for iPad mini from Apple, which is looking to diversify its supply chain, with shipments slated for 2014. In response, Compal said it does not comment on customer orders and status. |