Asustek to put nine OEM units into two new firms

Taiwan's Asustek Computer, the world's top motherboard maker, Saturday unveiled a reorganization plan that will move nine of its contract manufacturing units into two new companies. The move was part of the firm's broader plan announced in July to split its contract manufacturing from its branded businesses.

Asustek will put eight units involved in PC-related original equipment manufacturing into a new company called Pegatron, the company said in a statement. Pegatron will issue common shares in exchange for the units' assets worth US$561.7 million. Asustek will also put another OEM unit, Casetek Holdings, into another new company called Unihan, focusing on casing, modules and non-PC goods. The spin-off will be effective in January next year.