AUO’s Board of Directors Resolves to Demerge General Display and Public Information Display Businesses
Seizing booming market opportunities of the field economy to accelerate value chain extension
AU Optronics Corp. ("AUO" or the "Company") (TWSE: 2409) announces that in order to advance the Company's value transformation strategy, AUO’s Board of Directors resolved yesterday to demerge AUO’s General Display and Public Information Display businesses to Da Qing Corporation ("Da Qing”), an entity wholly owned by AUO. This is to enable the two business units to possess more agility for future development, and to enter strategic partnerships with higher flexibility, accelerating the building of ecosystems with partners across diverse domains, extending the value chain for smart display applications, integrating AIoT and novel technologies to seize new market opportunities from digital transformation of all verticals, with an aim to enhance overall operating performance.
As a leader of commercial and industrial displays, AUO has a large and complete global customer base. The Company is committed to becoming a smart IoT solution provider with displays serving as core components, and actively engaging its partners across all domains to deliver vertical field applications together. The resolution of AUO’s Board of Directors to demerge the General Display and Public Information Display businesses to Da Qing will enable the subsidiary to assist its customers in building smart verticals across diverse domains with innovative, high quality, high reliability and comprehensive product lineup, in addition to better and more focused services, so as to proactively develop markets for field applications including commerce, transportation, medical, industry, and education, forming an industrial and commercial AIoT ecosystem with customers and becoming their trusted long-term partner.
Da Qing will center on sales, R&D and customer service of general and public information displays. Its general display products are developed for ATM, POS, self-service kiosk, in-flight entertainment and navigation systems, smart factory IPC, and high precision medical equipment, among others. Its public information display products include: series of standard, stretched, square, and round shaped displays with high resolution, high brightness, high contrast, low reflection, ultra narrow bezel features for smart retail, transportation, and education purposes; TARTAN display technology with customized designs; and specialized industrial-grade displays for harsh environments such as outdoors under strong sunlight.
After receiving authorization from the shareholders' meeting, Da Qing intends to issue 36,855,500 common shares for AUO to acquire at NT$10 per share, indicating an estimated value of NT$368,555,000, which is equivalent to the total business value of assets and liabilities AUO transfers by way of demerger. The effective date of the demerger is tentatively scheduled for January 1, 2021. AUO’s Board of Directors will continue to supervise and manage the subsidiary with corporate governance standards that uphold shareholders’ rights. AUO will also support Da Qing's operational growth with its strong financial foundation. It is hoped that through Da Qing, the general and public information display businesses will be able to maximize their business potential, and take active and agile actions to seize global smart display market opportunities, creating value together with customers and partners.