Taiwan's Asustek gains approval to buy Askey

Taiwan's Asustek gains approval to buy Askey

Asustek, one of Taiwan's largest electronics makers, gained regulatory approval to buy networking gear maker Askey.

Asustek Computer, the world's largest maker of computer motherboards and one of Taiwan's biggest technology companies, has received final government approval to acquire a Taiwanese maker of networking devices.

The deal to buy Askey Computer will add products such as computer modems, cable wireless modems and VOIP gateways to Asustek's offerings: product areas the company had not previously counted as strong points.

Asustek is already one of Asia's largest contract manufacturers of electronic goods, including making laptops for Apple Computer, in addition to game consoles and other devices.

It plans to issue 72.4 million new shares of its stock to complete the acquisition, trading the stock at a ratio of one of its own shares for every seven Askey shares. The deal is valued at $NT7.82 billion ($US245 million) based on Asustek's current stock market price of $NT108.

The record date of the merger has been set for March 1, 2006, according to Asustek.

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