19th Sep 2006 09:01
Sunplus Technology Co Limited19 September 2006 Sunplus Board Proposed to Split the Company into Three Home Entertainment, Personal Entertainment and Control & Peripheral Press Release Issued on: 2006/08/25 Hsinchu Science Park, Taiwan, R.O.C., August 25th, 2006 - Sunplus TechnologyCo., Ltd. (TAIEX: 2401, FTSE: SUPD) today announced that the Board Meetingproposed to split the company into three fabless IC companies at December 1st,2006. There will be two new companies spun off, Controller & Peripheral BU asone of them and Personal Entertainment BU plus Advanced BU as the other one.Home Entertainment BU and core IPs development will be continued in Sunplus. TheBoard also proposed a Shareholders' Meeting on October 13th, 2006. The re-organization on December 1st, 2005 changed the company from functionalbased to profit central SBU by product lines which including Home EntertainmentBU, Controller & Peripheral BU, Personal Entertainment BU, Advanced BU and LCDProgram. The LCD Program then spun off as Orise Technology on March 31, 2006.The Board Meeting today proposed to split Sunplus into three companies: the HomeEntertainment BU to be continued in Sunplus; Controller & Peripheral BU spun offinto one new start-up subsidiary 100% owned by Sunplus; and PersonalEntertainment BU plus Advanced BU spun off as another one. "We are gaining some benefit from the SBU after the re-org last December," saidChairman Chou-Chye Huang, "the product development strategy has beenconsolidated. We believe that we can be more focused and efficient to split theSBUs into independent companies, while keeping HE BU and the core intellectualproperties in Sunplus that will be licensed to affiliates to maximize its value. Sunplus will spin-off the Controller & Peripheral BU into its subsidiary CPTechnology Co., Ltd. ( "CP Technology", a temporary English name), and CPTechnology will gather the related assets and liabilities of the originalbusiness from Sunplus Controller & Peripheral BU. Based on Sunplus financialresults on June 30th, 2006 as final accounting date. Sunplus will spin-off theSunplus Controller & Peripheral BU related assets, NT$445,239,000 andliabilities NT$137,239,000, which net value are NT$308,000,000 to CP Technology.The capital of the spin-off company CP Technology will be NT$220,000,000 andSunplus will acquire the total 22,000,000 shares, which net price are NT$14pershare. CP Technology will be 100% hold by Sunplus. Personal Entertainment BU and Advanced BU in Sunplus will be spun off intoSunplus' subsidiary PE3G Technology Co., Ltd. ("PE3G Technology", a temporaryEnglish name), and PE3G Technology will gather the related assets andliabilities of the original business from Sunplus Personal Entertainment BU andAdvanced BU. Based on Sunplus financial results on June 30th, 2006 as finalaccounting date. Sunplus will spin-off the related assets NT$2,182,329,000 andliabilities NT$502,329,000, which net value are NT$1,680,000,000 of PersonalEntertainment BU and Advanced BU to PE3G Technology. The capital of the spin-offcompany PE3G Technology will be NT$1,200,000,000 and Sunplus will acquire thetotal 120,000,000 shares, which net price are NT$14 per share. PE3G Technologywill be 100% hold by Sunplus. After Sunplus shareholders approve this spin-off, the record date will bejoint-decided by Board meeting of Sunplus, CP and PE3G. So far the tentativerecord date will be on December 1st, 2006. Sunplus will hold extraordinary shareholders' meeting to discuss this spin-offat 9:00a.m. October 13th, 2006 in Room203 of the Association of Industries inScience Park in Hsinchu. The shareholders' register shall be closed forregistration of transfer from September 13th, 2006 through October 13th, 2006. About Sunplus Sunplus Technology Company Limited, established in 1990, is an IC design companydevoted to electrical consumer applications. Sunplus offers not only IC designbut also system solutions to maximize customer's profit by differentiating eachdesign. Sunplus' reusable IP such as audio/video, microprocessor and digitalsignal processor technologies applied to hundreds of IC products such as DVDplayer/recorder, LCD driver/controller, game processor, camera controller,mobile media processor and ASICs that contributed to our quality life. Withsales of NT$18,781 million for 2005, Sunplus has a compound annual growth rateof over 30% over 5 years. For more information, please visit the Sunpluswebsite: www.sunplus.com. For further press information, please contact Sunplus: Ann Lai Tel. +886 3 578 6005 ext. 2202 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SUPD.L