BenQ's Board of Directors convened today to approve a plan to spin-off its branded business and rename the company to Jia Da Corporation.
The plan is a continuation of BenQ Group?s "Dual Core Competency Strategy", which is to focus on the core competencies of brand & services and manufacturing & technology to maximize competitiveness and efficiency. After the spin-off, BenQ Corporation will be renamed Jia Da Corporation (temporary name) and the spun-off company is scheduled to succeed the name of BenQ Corporation.
"The spun-off company will be a 100% owned subsidiary of Jia Da Corp. and the change is expected to elevate the operating efficiency and strengthen business competence of the BenQ Group," BenQ said in a statement.
The spin-off plan is subject to approval by a meeting of shareholders on June 15, 2007 and the Board of Directors has set the record date of September 1, 2007 for the proposed spin-off.
"Today?s announcement is a continuation and fulfillment of our Dual Core Competency Strategy, which allows the BenQ Group to focus on two very specialized fields of ICT industry," said K.Y. Lee, Chairman of BenQ Corporation. "After the discontinuation of funding for the German mobile phone subsidiary, BenQ?s branded business structure has become less complicated and the scale of the branded business has become relatively small compared to our integrated manufacturing service business. Therefore, it is a straightforward decision to spin-off the branded business."
BenQ?s branded business has achieved sufficient profit and scale to sustain and grow its operation independently within a short five-year span; it operates and markets its diverse product portfolio through a strong global sales and marketing network. After the spin-off, the branded company will be positioned as a company with strong integration of 3C technology in the fields of product design, mobile communications, mechanical & material engineering, and network convergence technologies. All BenQ brand related global sales and marketing departments and related R&D units as well as the Lifestyle Design Center and part of the Advanced Technology Center will be transferred to the spun-off unit. In addition, Mr. K.Y. Lee, Mr. Jerry Wang and Mr. Conway Lee have been appointed as Chairman, Vice Chairman and President of BenQ Corporation respectively.
The spin-off would not impair the shareholders? interests. Jia Da Corp. will be positioned as a dedicated 3C integrated manufacturing service provider. It is also expected to by take advantage of the resources within the BenQ Group while it will focus on its expertise in the fields of display, optoelectronic devices, mobile devices and infotainment solutions. Furthermore, Mr. K.Y. Lee and Mr. Sheaffer Lee will continue to serve as Chairman and President of Jia Da Corp. respectively.