MiTAC Holdings Corporation Announced the Establishment of MiTAC Digital Technology Corporation Which Focuses on Connected Car and Auto Electronics
(October 12th, 2017, Taipei, Taiwan) MiTAC Holdings Corporation (MHC,TWSE: 3706) held a press conference of material information at the Taiwan Stock Exchange today on behalf of its subsidiary MiTAC International Corporation (MIC) announcing the Board of Directors’ approval of the spinoff of its Mobile Communication Product Business to MiTAC Digital Technology Corporation (MDT). The record date of the spinoff is set on January 1st, 2018. This spinoff is an organization re-structuring within the group and will not affect the shareholders equity of MHC.
MHC’s great development efforts on cloud computing, IoT, smart living and implementing independent business operations were part of the transformation of the group aiming to increase competitiveness. MiTAC Computing Technology Corporation (MCT) was first established back in 2014, its core businesses include Server, Storage Expansion, High-Performance Computing, and Data Center. To continue MHC’s long-term development strategy, MIC and MDT’s Board of Directors both approved the spinoff of MIC’s Mobile Communication Product Business, valued NT$1.5 billion (including assets, liabilities, and operations) to the newly incorporated MDT. MDT will issue new shares as consideration to MHC. The record date of the spinoff is set on January 1st, 2018.
According to market research institution, it estimates that number of vehicles with internet connection will reach 61 million by 2020. MIC’s Mobile Communication Product Business soon to be MDT after enduring multi-year transformation, with advanced GPS navigation system, system design and integration as well as manufacturing capability will provide connected car, auto electronics solutions and services worldwide through its own brand Mio, Magellan and Navman.
Based on safety, security and monitoring system, MDT will provide ADAS design, AI dash cam, cloud navigation system and rugged tablet to accommodate specialized off-road vehicles. By capitalizing on its strengths and increasing its company value, MDT is aiming to become a significant player in the connected car and auto electronics industries.
MiTAC International Corporation (MIC) after spinoff of its two main businesses will continue to manage overseas investments, provide back-end support and services to the group.