MiTAC Establishes MiTAC Holdings Corporation Pushing for Next Level of Cloud Services
(April 8th 2013, Taipei, Taiwan) The Board of Directors of MiTAC International Corp. (TSE:2315) met today (4/8) and agreed to form a stockholding company, MiTAC Holdings Corporation (“MiTAC Holdings”). As a result of this decision, all the issued and outstanding shares of MiTAC International Corp., through a stock swap, will be swapped to all the issued and outstanding shares of MiTAC Holdings. The formation of the investment company benefits MiTAC by transitioning it into the cloud services industry with a dual focus on cloud services and client services. While combining the group’s resources to support and enhance the core competence, namely the administrative network with research and development and the specialized marketing and sales capability, both cloud services and client services will be operated independently by their assigned business groups.
Based on the common stocks on the audited report as of December 31st, 2012 and the opinions of the accounting experts, all the issued and outstanding common shares of MiTAC International Corp. will be swapped to the common shares of MiTAC Holdings at a ratio of 0.5 common share of MiTAC Holdings for each issued MiTAC International Corp. common share. After the stock swap, the authorized capital of MiTAC Holdings will be valued at NT$ 7,649 million. MiTAC International Corp. will be a wholly-owned subsidiary of MiTAC Holdings. A shareholders meeting will be held on June 24th, 2013 to discuss this proposal. A scheduled stock swap base date is set for August 30th, 2013, following the completion of stock swap process and official government approvals. The shareholders’ rights will not be affected by this stock swap.
Shifting global economic trends, the proliferation of smartphones and tablet products, the emergence big data and the growth of cloud computing have prompted MiTAC to devote its resources to establishing itself in the cloud industry, focusing on cloud services and client services. After the process of this stock swap is completed, MiTAC Holdings will conduct an internal administrative restructuring. Different operating business groups will be categorized in accordance with their primary business objectives.
“Cloud services” will focus on computing devices and backend infrastructure as its core business value. In addition to the company’s ODM enterprise products and its professional TYAN product line, MiTAC has established a significant market position in the cloud services industry. Both the U.S. database center and the China cloud services project have shown substantial results. The reorganization of the cloud services will offer a more complete solution for the usage of public cloud, private cloud and hybrid cloud backend infrastructure.
“Client services” will focus on providing devices that combine smart mobile services and cloud services by way of SoLoMo (Social, Local, Mobile). Through user experience with Mio, Magellan and Navman branded living, health, sports, leisure and navigation service products, MiTAC collects and categorizes valuable information and provides immediate resources to its users. This service has prepared MiTAC for entry into the competitive cloud services industry.
In the future, the two independent business groups will focus on their specialties with separate performance goals, operating procedures and modes. MiTAC Holdings will be in charge of dividing and sharing internal resources, acting as a strong support for its cloud and client services. This will allow the company to create the best possible conditions for its separate business groups to operate and to face rapid industry change, thus allowing all business groups to achieve and maintain a leading position in its professional and the global market.
About MiTAC International Corp.
A leader in the global ICT industry, MiTAC International Corp. was founded in 1982. The company began operations in the Hsinchu Science Park (HCSP), Taiwan, and was the HCSP’s first system manufacturer. By 1990, MiTAC was listed on the Taiwan Stock Exchange (TSE: 2315).
Over the past thirty years, MiTAC has evolved into a multinational organization offering R&D, design, manufacturing, assembly, marketing and solutions covering the full range of electronics manufacturing services (EMS). These include joint development management and manufacturing (JDM), original design manufacturing (ODM), original equipment manufacturing (OEM) and original product manufacturing (OPM).