Taiwan’s Wistron emerges as new major shareholder of Formosa Prosonic

PETALING JAYA: Taiwanese engineering firm Wistron Corp has emerged as a new strategic and major shareholder of Formosa Prosonic Industries Bhd (FPI) after buying a 28% stake in the speaker systems assembler for RM55.41 million.
Wistron bought 69.26 million 50 sen shares from substantial shareholders of FPI at 80 sen a piece.
In a statement to Bursa Malaysia yesterday, FPI was quick to assure that there will be no changes in its management, business direction or policies with Wistron's entry. FPI is yet to receive any formal indication from Wistron on whether it will request for a seat on the board.
"The shares acquired by Wistron were from certain substantial shareholders of the company, some of whom are also directors of the company. These affected directors and most of the affected substantial shareholders had collectively held 33.85% of the total issued and paid up capital of the company and had disposed a total of 17.27% to Wistron," FPI told Bursa Malaysia yesterday.
It said that Wistron acquired the balance of 10.73% from other shareholders who were not directors nor substantial shareholders of the company or persons connected with the directors and/or substantial shareholders.
FPI directors that sold their shares included group managing director Shih Chao Yuan, Chen Ching Sen and Chiang, Tzu-Hsiung @ Tzu Hsiong Jhang. Others involved in the deal were Wu Chang Chuan via his investment vehicle Cambridge International Traders Ltd, Chang Song Hai, and Chuang Jieh Ching. The directors still hold a 16.58% stake in the company.
FPI said the investment by Wistron will be a win-win proposition for both parties.
"This new partnership is expected to bring about greater synergies and business opportunities for both Wistron and the company," it said.
Established on May 30, 2001, Wistron is a Taiwan-based original design manufacturer company producing information and communication technology (ICT) products and employs over 60,000 staff. It is listed on the stock exchange of Taiwan and has operations in Asia, Europe and North America.
"Wistron with its strong engineering base and extensive experience and product development expertise will be able to contribute to the overall business strategy of the company which in turn will be able to benefit from the electronic capabilities of Wistron and have access to manufacturing opportunities for a wider range of ICT related products through Wistron's network," FPI said.
FPI fell 10 sen or 1.09% to close at 91 sen yesterday.