Lite-On Group Announces Four-in-One Merger
Lite-On Group (Taipei, Taiwan) announced a four-in-one merger of its affiliates, computer components maker Lite-On Electronics Inc., computer monitor maker Lite-On Technology Corp., communications products maker GVC Corp. and keyboard maker Silitek Corp., and the establishment of a new company. The market value of the new Lite-On's shares will amount to more than NT$100.0 billion.
The merger will enable NT$3.0 billion worth of direct and indirect costs to be saved, equivalent to NT$1.5 per share of cost efficiency. The new Lite-On would sustain an annual growth of 30 percent at least in sales in the coming years. Combined sales for 2002, including those from subsidiaries, will reach NT$450.0 billion.
Lite-On Group announced that it would set up global operation headquarters and research and development centers in Taiwan. Its existing headquarters in Neihu, a district in Taipei City, will be inaugurated in the first quarter of 2003. Also, there will be no cutbacks in employment as a result of the merger. The merger will take effect in December 2002.