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Avalue Announce Strategic Alliance IOT – Solution & Services

Avalue Announce Strategic Alliance IOT – Solution & Services

Taipei, Taiwan

October 2, 2014

 

The board meeting of Avalue Technology Inc. (hereafter referred as Avalue, 3479.TW) was convened today. A resolution of 2014 private placement to issue 14 million shares of common stock was reached during the meeting. Avalue will raise NT$ 494.9 millions in private placement which will be offered to Compal Electronics, Inc. (hereafter referred as Compal). Compal will become the biggest shareholder of Avalue with 20.5% shares after the private placement is completed.

 

The plan of capital increase by cash through private placement has been approved in the Avalue’s General Shareholder’s Meeting and no more than 14 million shares of common stock will be issued in one year. The price of private placement can be no lower than 80% of the reference price.

 

Compal is one of the world’s top 5 laptop ODM manufactures and has made vertical arrangement on niche industry through strategic investment in recent years in order to increase growth momentum and profit capacity. Because of the private placement plan, Avalue can make use of the manufacturing, procuring and R&D ability of Compal to aggressively develop smart hand-held devices, tablets and growing cloud computing technology, which will dominate the future value chain in the Internet of Things. This plan will increase the competitiveness of Avalue in industrial computer-related products, improve production efficiency and quality, reduce product costs and facilitate R&D of new products. Avalue can also use the customer base of Compal to do cross selling, and expand the future business opportunity in the Internet of Things and win over large-scale orders collectively.

 

Advantech Group holds a positive attitude about Compal participating in the private placement of Avalue and the existing business relationship between Advantech Group and Avalue will not be affected. Advantech Group will focus on the future industrial trend and development and will continue to support Avalue. We may have further cooperation in the future to benefit three parties collectively.

 

 

Contact:

Roger Lo

Spokesman

886-2-82262345 Ext.8101

spokesman@avalue.com.tw
 

 

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