In 2007 mobo maker Asus voluntarily split itself into three separate companies: ASUSTeK, Unihan and Pegatron, the latter two being subsidiaries of the ASUSTeK parent company. Since that time, Pegatron has been an ODM exclusive to Asus-branded motherboards. Given this exclusivity, Asus announced on Friday (PDF) that it has begun the process of divesting Pegatron into its own independent firm.
According to Asus’ filing, the firm will establish Pegatron via a temporary holding company which will allow Asus to shuffle shares without impacting the value owned by shareholders. Pegatron and the holding company will eventually be merged to complete the transaction, and Asus intends to reduce its 25% minority stake in the new firm to less than 20% in the future.
When polled about the logic behind the restructuring, Asus said it was a matter of market agility and taxation.
“We expect Pegatron will enjoy better business opportunities with the ownership transfer. ASUS retains 25% Pegatron shares based on the following considerations, 1)To meet the expectation of Pegatron’s clients; 2)To carry out a proper degree of capital reduction; 3)To maintain a fair capital structure of ASUS; 4) To cap the taxable income amount to shareholders resulting from the capital reduction,” reads their presentation.
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