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AUO to Boost Stakes in Qisda

2008/04/10 | By Quincy Liang

Taipei, April 10, 2008 (CENS)--AU Optronics Corp. (AUO), the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, recently announced that its board of directors had approved the purchase of Qisda Corp.'s common shares valued at under NT$ 2 billion (US$66.23 million at US$1: NT$30.2) through a private placement.

AUO claimed that it plans to acquire 90,456,800 common shares at NT$22.11 (US$0.73) per share so as to elevate its stakes in the affiliated Qisda to reach 9.58%. Qisda is the former contract manufacturing business division of BenQ Corp.

Through this investment, the panel manufacturer is expected to further strengthen strategic relationship with Qisda, thus creating a three-win status for AUO, Qisda and customers.

Both AUO and Qisda can further foster their core competitiveness respectively and provide brand customers with better solutions in capturing emerging trends of TFT-LCD applications in consumer-electronics market, AUO said.

AUO stated that the mode of supply chain in the TFT-LCD industry has been rapidly changing in recent years as the production ratio of consumer-electronics application products has been rising. With this, panel makers, system integrators and makers, and brand customers would form closer partnerships to meet the increasing requirements for diversified products from end users.

To better serve to its brand customers and take potential business opportunities in the early stage, AUO said that it would prepare itself for the next move by building further relations with important system integrators.

Since Qisda has been a long-term strategic partner to AUO, AUO said that its board of directors believes the decision would support AUO's long-standing sustainability. "It is also believed that the tie-up investment would help Qisda scale up its business operation and enhance the competitiveness and operational efficiency for both entities through a stronger cooperation relationship," AUO pointed out.