USI prepares to buy Abit?s motherboard division
Universal Scientific Industrial (USI) today have announced that they are to aquire the motherboard division of Abit. Abit was going through a ruff patch as of late. This merger will now give some financial backing for the troubbled motherboard manufacturer.
Under the terms of the agreement, USI will pay a total of NT$350 million in cash and 20 million preferred shares of USI?s newly established subsidiary for Abit?s motherboard brand ?ABIT?, as well as all patents, products, business and human resources related to its motherboard business, according to USI?s release. In April 2005, Wan Hai Lines purchased 23% of Abit with NT$433 million. The latest transaction shows a significant decline in the value of the company. This has been reflected by the stock price, which has fallen more than 70% since April last year.
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